AI could drive a natural gas boom as power companies face surging electricity demand. In this blog post I will present a summary of the recent research in this area and some supporting references from natural gas companies. After a decade of flat power growth in the US, electricity demand is forecast to grow as much as 20% by 2030 according to a recently published report by Wells Fargo. That report estimated AI data centers are expected to add 323 terawatt hours of electricity demand by 2030, which by comparison, is 7 times the electricity consumption of New York City. Similar analysis by Goldman Sach’s estimates data centers will represent 8% of total US electricity demand by 2030. The big tech companies have committed to powering their data centers with renewables to slash carbon emissions, but a report by Rystad Energy indicates surging electricity loads require an energy source that can meet spiking demand when renewables are not generating enough power. Power hungry data centers consume electricity 24/7, not falling in line with fluctuating generation from renewable energy sources. It is this baseload requirement for electricity which favors natural gas, which can generate power while renewables are not generating. The… continue reading