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Market Chatter: US Fossil Fuel Power Spending Set to Eclipse China

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US spending on coal and gas power plants is set to outpace China for the first time in decades, according to a Financial Times report on Wednesday, citing International Energy Agency data forecasting US fossil fuel investment to hit $50 billion this year.

According to the report, this sudden pivot is fueled by artificial intelligence hyperscalers ordering an unprecedented 20 gigawatts of gas-fired turbines in Q1 alone, mostly to build self-sufficient "behind-the-meter" power setups that bypass the traditional grid entirely.

The immense power demands of the AI race are actively outstripping utility capacities. As tech giants scramble for immediate energy, manufacturing supply chains have been completely swamped, causing turbine equipment prices to nearly triple and forcing the US to ramp up its reliance on natural gas, the report added.

The IEA did not respond immediately to' request for the dataset.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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Market Chatter: US Fossil Fuel Power Spending Set to Eclipse China | FINWIRES