Open Circuit The natural gas ‘bridge’ becomes a highway
27 snips
Apr 10, 2026 Big tech is underwriting gigawatts of new natural gas capacity to serve massive AI campuses. The conversation unpacks financing hacks, turbine bottlenecks, and why gas looked like the fastest route to deliverability. They explore risks of overbuilding, rate impacts on consumers, and how virtual power plants and edge tech could change future gas needs.
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Hyperscalers Turning Gas Into Long-Term Capacity
- Hyperscalers shifting to fund on-site natural gas means gas is moving from a temporary bridge to substantial, long-term capacity additions.
- Meta funding 7.5 GW for one Louisiana campus and others following signals rapid, concentrated buildout pressure.
Deal Structure Drove Massive New Gas Builds
- Meta's Louisiana deal used utility-led new builds instead of buying existing capacity, so large new gas plants were required to meet deliverability.
- Caroline Golan notes Entergy and regulators settled on the fastest, lowest-friction path: new gas construction.
Stated Project Costs May Be Understated
- Reported capital costs look suspiciously low versus market turbine prices, implying future repricing or rate-case disputes.
- Jigar Shah questions how Entergy secured turbines at prices much below current market levels.