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Powering Progress: What EIP Gets Wrong About Natural Gas and AI

A new report from the Environmental Integrity Project (EIP) paints a one-sided picture of the natural gas-fired power plants helping meet America’s growing electricity demand, arguing they come at an unacceptable environmental cost.

What the report largely overlooks is why this new generation is needed in the first place. Artificial intelligence, cloud computing and the broader digital economy are driving unprecedented demand for reliable electricity, making abundant domestic energy supply, overwhelmingly provided by natural gas, an increasingly important part of America’s energy future.

While the report raises legitimate questions about meeting rising energy demand responsibly, it relies on worst-case assumptions, overlooks how today’s projects are actually developed, and minimizes the critical role natural gas plays in powering the technologies, industries, and communities that Americans and their allies depend on every day.

Let’s break down some of its key claims.

Claim:  “At least 74 gas power plants are planned for the U.S. data center industry that could produce 662 million tons of greenhouse pollution per year.”

FACT: The report’s headline emissions figures rely on maximum permitted emissions, not expected operating emissions.

Throughout the report, EIP cites greenhouse gas and air pollutant totals based largely on facilities’ “potential to emit,” the maximum emissions allowed under Clean Air Act permits or estimates for projects that have not yet completed permitting. As the report itself acknowledges, permitted emissions can be lower than actual operating emissions, and many projects without permits rely on EIP’s own estimates rather than project-specific data.

In fact, more than half of the 74 projects have not applied for a construction permit when the analysis was compiled, meaning that much of the report’s headline total rests on EIP’s own modeling rather than the project-specific permit data.

Permit limits are intentionally higher than needed. They establish the upper bounds regulators use to ensure compliance under a wide range of operating conditions, not predictions of how facilities will perform day by day. Presenting those figures as though they represent inevitable emissions paints an incomplete picture of how these projects are permitted and operated.

Claim: “Fossil fuels should not power a technology of the future.”

FACT: Natural gas is helping power America’s next technological revolution.

The report presents natural gas almost exclusively as an environmental liability, giving little attention to the benefits it delivers for consumers, businesses and the broader economy.

Reliable electricity is the backbone of AI infrastructure. The federal government recognizes data centers as critical infrastructure. They operate around the clock, supporting everything from cloud computing and financial transactions to healthcare applications, national security and scientific research. These facilities require dependable power every hour of every day.

Natural gas provides exactly that. As electricity demand grows at a pace not seen in decades, abundant domestic natural gas is helping ensure America has the reliable energy needed to support AI, strengthen global economic competitiveness and maintain grid reliability.

The conversation should not be limited to the energy required to power AI. It should also include the enormous societal benefits that energy makes possible.

Claim: “Developers of data centers and their gas power plants should be required to use modern and efficient technology that minimizes air pollution.”

FACT: The industry is already investing in technologies that improve efficiency and environmental performance.

EIP recommends that developers use combined-cycle natural gas turbines, improve water management and adopt technologies that reduce emissions and environmental impacts.

These are not new ideas. They are priorities already shaping today’s energy infrastructure. In fact, natural gas is the nation’s largest source of electricity generation, accounting for about 41 percent of U.S. utility-scale electricity in 2025, according to the U.S. Energy Information Administration.

Combined-cycle natural gas facilities generate more electricity from the same amount of fuel while reducing emissions compared to older technologies, and they are being deployed on a growing number of large-scale power projects. Developers also continue investing in advanced turbine technology, improved emissions controls, more efficient cooling systems and operational improvements that reduce environmental impacts while delivering reliable power.

The natural gas industry is not standing still. It continues to innovate, investing in technologies that strengthen both operational efficiency and environmental stewardship while meeting the country’s growing energy needs.

Claim: “Governments at all levels must be transparent about the review and approval process for data centers and related power plants so that communities have a meaningful say in decisions that impact their health and wellbeing.”

FACT: Large energy infrastructure projects already undergo extensive regulatory review and public oversight.

The report argues that governments should ensure transparency and meaningful public participation throughout the approval process.

In reality, major energy infrastructure projects already face rigorous federal, state and local review before construction begins. Depending on the project, developers must navigate Clean Air Act permitting, environmental reviews, local zoning processes, public comment periods and ongoing regulatory compliance requirements.

Like any major infrastructure project, community concerns should be heard and addressed. But where individual developers attempt to sidestep that framework, the remedy is straightforward: enforce the permitting laws already on the books, rather than impose a moratorium that would stall the reliable power local economies increasingly depend on.  The report’s own discussion of permitting and regulatory review demonstrates that oversight is already a fundamental part of the development process, not an afterthought.

Bottom Line

America’s growing demand for AI and digital infrastructure presents an important challenge: how to provide the reliable, affordable energy needed to support innovation while continuing to advance environmental stewardship.

Unfortunately, EIP’s report presents only one side of that conversation. By relying on maximum permitting assumptions, overlooking ongoing technological advancements and minimizing the role natural gas plays in supporting modern life, it misses the broader story.

Natural gas is doing far more than powering data centers. It powers homes, hospitals, manufacturers, schools and businesses across the country while enabling the next generation of technological innovation. At the same time, the industry continues investing in more efficient technologies, responsible development and environmental improvements that strengthen both energy reliability and environmental performance.

America’s digital future will require abundant, dependable energy. The discussion should focus not only on the challenges of meeting that demand, but also on the tremendous opportunities that reliable domestic natural gas helps make possible.

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