NRG Energy Announces Plans to Build Four New Natural Gas Power Plants
Houston-based NRG Energy has announced a venture to build four new natural gas power plants in the United States to power artificial intelligence (AI) data centers, with some slated for Texas.
A Growing Demand for Electricity
The growing demand for electricity, partly due to the buildup of data centers and the increasing use of AI, has led to an exponential increase in power needs. NRG Executive Vice President Robert Gaudette emphasized the need for innovative partnerships to meet this growing demand.
"The growing demand for electricity in part due to GenAI and the buildup of data centers means we need to form new, innovative partnerships to quickly increase America’s dispatchable generation," Gaudette said. "Working together, these three industry leaders are committed to executing with speed and excellence to meet our customers’ generation needs."
Partnership with GE Vernova and TIC
NRG has partnered with energy company GE Vernova and The Industrial Company (TIC), an engineering, construction, and procurement company, to advance the construction of four natural gas combined cycle power plants. Each plant is expected to produce more than 5 gigawatts of electricity.
Serving the Texas Power Grid and Beyond
The new facilities will serve the Electric Reliability Council of Texas (ERCOT), which operates the Texas power grid, as well as the Pennsylvania-New Jersey-Maryland (PJM) regions. The first new plants, accounting for 1.2 gigawatts, are expected to be brought online in 2029, with the remaining plants to be completed by 2032.
Existing Projects in Houston
This announcement comes several months after NRG began pursuing the construction of three natural gas plants in the Houston area. In June 2024, NRG applied for the first of three loans with the Texas Energy Fund to build 1,600 megawatts of "quick-start natural gas power." The first plant will be built at the company’s Cedar Bayou plant in Baytown, with the remaining two projects to be built in Wharton and Greens Bayou. NRG said it could begin dispatching power from those plants as early as summer 2026.
Frequently Asked Questions
Q: Where will the new plants be built?
A: Although NRG did not provide exact locations, the new facilities will serve the Electric Reliability Council of Texas (ERCOT) and the Pennsylvania-New Jersey-Maryland (PJM) regions.
Q: When will the new plants be completed?
A: The first new plants, accounting for 1.2 gigawatts, are expected to be brought online in 2029, with the remaining plants to be completed by 2032.
Q: What is the purpose of these new plants?
A: The new plants will be used to power artificial intelligence data centers, helping to meet the growing demand for electricity.
