Gas-fired generation for data centres could expand by around 30 bcm by 2030 and in high-growth scenarios, nearly double by 2035, equal to 60 bcm of incremental supply, according to a new report from the International Gas Union.
Renewables are expected to provide about half of data centres’ electricity consumption by 2030. However, their inherent variability creates a mismatch with the flat, round-the-clock load profile of data centres which requires not only more generation but also significantly more dispatchable capacity. Gas is well positioned to provide the bulk of additional, flexible, dispatchable supply, while contributing to decarbonisation goals, the report states.
Gas-fired power remains competitive for dispatchable electricity generation. At moderate fuel prices, industry estimates put new combined-cycle Gas turbines costs in the $50 to 80 MWh range, cheaper than coal in many regions and substantially below long-duration storage.
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