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Natural Gas, LNG and the Data Centre Power Boom

Why the origin of fuel matters

Natural Gas, LNG and the Data Centre Power Boom

Natural gas is increasingly part of conversations about AI infrastructure, particularly where utilities cannot connect a large project quickly enough. But a gas turbine, a pipeline and LNG are not the same thing. LNG is natural gas cooled into liquid form so it can be transported, often by ship. It generally has to be returned to a gaseous state before it enters a conventional distribution system. A data centre running on pipeline gas may have no direct LNG connection at all.

The distinction changes which infrastructure, costs and contracts need examination. A site supplied by an existing pipeline has different requirements from one that needs a new gas connection or relies on a regional system supplied in part by imported LNG. Prices may depend on local gas markets, transportation constraints and the terms of long-term contracts. Gas generation also brings air-permitting requirements and emissions that depend on equipment, operating hours and pollution controls. The presence of a permitted turbine is not evidence that it operated at full capacity.

There is also a big difference between emergency backup and routine generation. Generators tested periodically for reliability have a different fuel and emissions footprint from machines expected to run daily. Temporary generators installed during construction or grid delays deserve separate scrutiny, especially if their planned retirement dates change. The public record may contain a permit limit, but that is a ceiling, not a measurement of actual use.

What we should publish is straightforward: whether gas is actually used; whether the plant is proposed, permitted or operating; where the fuel is supplied from, if documented; and the measured hours and emissions once it runs. If LNG appears nowhere in the supply documentation, we should not invent an LNG dependency to make the project seem more complicated.

These explainers separate announced plans, recorded outcomes and unresolved questions. Find individual facility sources and submit corrections in the Observatory.

General background: IEA, Energy and AI. For site-specific claims, consult each facility's source records.