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Data center operators look to adapt as power availability becomes increasingly limited

Developers weigh alternatives such as natural gas to generate their electricity
Elon Musk’s artificial intelligence company, xAI, converted this distribution warehouse in Memphis into its second data center in the city and recently received permission to install natural gas turbines to power the site. (CoStar)
Elon Musk’s artificial intelligence company, xAI, converted this distribution warehouse in Memphis into its second data center in the city and recently received permission to install natural gas turbines to power the site. (CoStar)
CoStar Analytics
March 16, 2026 | 8:13 P.M.

Electricity prices across the U.S. have risen on average by more than 7% annually over the last five years, and stand at around 19 cents per kilowatt hour as of the end of 2025, according to data from the Bureau of Labor Statistics. This pricing is well above the norm for an electricity market that was consistently priced between 13 and 14 cents per kilowatt-hour from 2009 to 2020.

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