U.S. companies are set to spend approximately $50 billion on power generation from coal and natural gas this year, according to the International Energy Agency, as electricity demand surges across the country driven by the data center boom. The finding, reported by the Financial Times, marks the first time in decades that U.S. spending on coal and gas generation would exceed what China is investing in the two fuels.

The surge in spending will come mostly from much stronger demand for gas turbines amid the data center boom in the United States. According to the IEA, U.S. companies placed orders for some 20 GW in gas turbine generation capacity in just the first quarter of this year. Prices for gas turbines have moved sharply higher on tight supply, contributing to the higher spending.

Rystad Energy reported that prices for gas turbines have risen from $800 per kWh to over $2,500, as cited by OilPrice.com. In addition to data centers, whose owners have bet on baseload power supply from gas and coal, the expansion of wind and solar has also prompted stronger demand for baseload generation to keep the grid balanced when weather conditions are unfavorable.

For Texas, the implications are significant. The state leads the nation in both natural gas production and wind power capacity, making it a central player in the push to expand baseload generation. Texas is also home to a growing number of data center projects, particularly in the Dallas-Fort Worth metroplex, which has become one of the largest data center markets in North America.

While demand for electricity soars, gas turbine production has been flat over the past few years, resulting in a deficit. Siemens Energy, one of the world’s top three gas turbine makers, reported in February that its gas services business had seen a record quarter in orders, with a total of 102 new turbines in the backlog. As much as 40% of these new orders came from the United States, and another 35% came from Europe.

Mitsubishi, another major turbine manufacturer, has said it would double its turbine production capacity in response to soaring demand. The company’s chief executive noted that prior plans to boost production capacity by 30% were not enough to meet growing demand, according to OilPrice.com.

The $50 billion spending figure underscores a broader shift in U.S. energy policy. After years of declining investment in fossil fuel generation, the rapid growth of AI data centers and industrial electrification is driving a renewed focus on reliable baseload power. Texas, with its abundant natural gas resources and deregulated electricity market, is positioned to capture a significant share of this investment.

The trend also highlights the challenges of balancing clean energy goals with the practical need for grid reliability. As Texas continues to expand its renewable energy capacity, the state’s grid operator ERCOT has increasingly relied on gas-fired plants to maintain stability during periods of low wind and solar output, making the investment in new gas generation critical for the state’s energy future.