Artificial Intelligence: A Game-Changer for U.S. Natural Gas Industry

The surge in data center construction driven by the rapid development of artificial intelligence (AI) technology is poised to significantly increase the demand and prices of natural gas in the United States. According to investment bank Tudor, Pickering, Holt & Co., the soaring electricity consumption by data centers will require an additional 8.5 billion cubic feet per day (Bcf/d) of natural gas by 2030, pushing up prices to an average of $4 per million British thermal units (MMBtu). This development could challenge the Biden Administration’s ambitious target of transitioning to a carbon-free electricity grid by 2035.

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