AI's vast energy needs may spur demand for natural gas

AI applications require significant amounts of power, with estimates of 60+ kilowatts per rack compared to 5-10 kW for traditional data centers. This is straining electricity generation.

Natural gas remains a major fuel for electricity generation in the US, supplying about 30%. It could benefit from the growth in AI power demand.

Total new demand from AI by 2030 could be 335-390 TWh, vastly more than utilities anticipated just a few years ago.

Renewables will play a role but face timeline and infrastructure constraints. Gas may fill the gap as tech firms need reliable power.

Gas drillers like EQT are being approached by tech firms about supplying gas. If demand rises, gas prices and producer multiples could increase.