The US is pouring money into fossil fuel power generation at a pace not seen in a generation. The International Energy Agency projects that American spending on coal and gas power plants will reach $50 billion this year, a figure that reflects the country’s scramble to keep the lights on as electricity demand skyrockets.
According to the IEA’s World Energy Investment 2026 report, Final Investment Decisions for new gas-fired power plants in the US are expected to reach their highest levels in 25 years. Globally, orders for new natural gas-fired power plants hit 130,000 MW in 2025, with the US and the Middle East leading the charge. The IEA’s broader global outlook puts total energy investment at $3.4 trillion, with the electricity sector commanding a massive share of that capital.
US fossil fuel power investments are forecast to surpass China’s by 2026. That would be the first time in decades that America outspends Beijing on coal and gas generation. On a global scale, the IEA estimates coal power investment at roughly $70 billion, while natural gas exceeds $100 billion.
The IEA expects data center-driven energy consumption to continue climbing through 2030. Natural gas fills the gap between immediate power demand and slower-to-build alternatives. It is dispatchable, relatively quick to build compared to nuclear, and pairs well with intermittent renewables as a backup source.
