Powerconnex Inc. has informed the Ohio Power Siting Board of its intention to construct a 120-megawatt natural gas plant in New Albany, Ohio. The facility, named the New Albany Energy Center, is designed to be the primary electricity source for an adjacent data center, both to be built on a 48.6-acre site.

The project's timeline indicates construction could begin as early as the fourth quarter of 2025, with the data center potentially operational by the first quarter of 2026. This development comes amid a surge in electricity demand driven by the artificial intelligence boom, which is putting unprecedented strain on power grids across the United States.

The 120-megawatt capacity, while significant, pales in comparison to the multi-gigawatt facilities being planned by tech giants for AI operations. For instance, Meta has announced plans for a data center in Louisiana with over two gigawatts of capacity.

This behind-the-meter arrangement, where the power plant is not connected to the grid, represents a growing trend among data center developers seeking to bypass regulatory bottlenecks and lengthy wait times for grid access. It follows a similar move in Abilene, Texas, where developers for an Oracle data center are constructing a 360.5-megawatt natural gas turbine plant.

The project underscores the challenges faced by utilities and regulators in meeting the rapidly escalating energy needs of the tech sector, particularly in emerging tech hubs like New Albany, Ohio. The area has attracted significant investments from major players including Amazon, Microsoft, Meta, and Google, leading to a dramatic increase in service requests to local utility AEP Ohio.

As the energy landscape evolves to accommodate the demands of AI and large-scale data processing, innovative solutions like on-site power generation are likely to become more common. However, this trend also raises questions about energy efficiency, environmental impact, and the long-term sustainability of powering the digital economy.