Renewables' Speed Advantage Reshapes Power Economics as Data Centers Strain Grid Capacity

Renewables are gaining a structural edge over gas, coal and nuclear as electricity demand from data centers outpaces conventional capacity build times, according to an analysis published Sept. 21, 2026. The International Energy Agency expects global data-center consumption to more than double to about 945 TWh by 2030, exceeding Japan's current total. Solar projects reach construction in roughly 15 months and onshore wind in 18, versus two years for combined-cycle gas and seven for nuclear, per Lazard's 2025 assumptions. Gas turbine supply is tightening. Siemens Energy ended its fiscal third quarter of 2026 with a 69-GW turbine backlog and lead times above three years. GE Vernova's gas-power backlog reached 116 GW in the second quarter of 2026, up from 100 GW three months earlier, with reservations taken for 2031 delivery. The IEA expects renewables to supply nearly half of added data-center electricity through 2035, citing short lead times and corporate power-purchase agreement compatibility.