US Natural Gas Power Plant Construction Costs Rise 66% by 2025
The construction costs for natural gas-fired power plants in the US have surged by 66% from 2023 to 2025, reaching an average of $2,157 per kilowatt. This increase is driven by rising electricity demand, particularly from data centers and new manufacturing facilities.
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From 2023 to 2025, the average construction cost for gas power plants utilizing combined-cycle turbines rose to $2,157 per kilowatt, a significant increase from under $1,500. The demand for electricity from data centers and factories is reshaping energy strategies, prompting proposals for new gas plants, which may conflict with climate objectives.
Additionally, the timeline for bringing these facilities online has extended by 23%. This trend is likely to increase competition for skilled labor and may lead to higher stock valuations for companies involved in gas energy and turbine production, such as GE Vernova Inc.
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