AI could drive a natural gas boom as power companies face surging electricity demand

Natural Gas Producers Bullish on Demand from AI and Data Centers #

Natural gas producers are optimistic about the increasing demand for natural gas driven by artificial intelligence (AI) and data centers. Electricity demand is expected to grow significantly in the next decade, especially as AI usage expands. Power companies are seeking to meet this demand by relying on natural gas when renewable energy sources are unable to generate sufficient power. According to forecasts, AI data centers alone could contribute a significant increase in electricity consumption, surpassing the capacity of renewables. To address the challenge of surging power demands, natural gas is believed to be the preferred choice by industry experts. It is predicted that natural gas will account for 60% of the growth in power demand from data centers and AI, while renewables will provide the remaining 40%. The rise in demand for natural gas is expected to result in an increase of 10 billion cubic feet per day by 2030. Power companies are actively securing energy sources to meet the growing electricity needs, particularly in regions with booming data center markets such as the Southeast of the United States. Natural gas producers, such as EQT Corp., are strategically positioning themselves to capitalize on this market growth. However, the reliance on natural gas to meet the demand raises concerns about environmental impacts as some groups advocate for a phase-out of fossil fuels.