U.S. natural gas producers see a role to play in supplying the burgeoning demand for electricity driven by data centers and AI technology.
Most big tech companies are turning to solar and wind power to power their AI development and data centers, but executives say renewable energy alone won't be enough to meet growing power demand. told the Financial Times.
Natural gas, which currently provides 43.1% of U.S. utility-scale power generation, will continue to dominate U.S. electricity demand because new renewable energy facilities will require backup generation, according to gas industry executives. Most will be fulfilled.
“We've got a really great emerging market with LNG,” Toby Rice, CEO of EQT, the top US natural gas producer, told the FT.
“But there's a new emerging market that people are excited about as well, and that's electricity demand.”
Power consumption from data centers is so high that U.S. power companies and regulators are significantly raising their forecasts for peak power demand over the next decade.
After more than a decade of flattening electricity consumption in the U.S., the AI boom and chip and other technology manufacturing are increasing U.S. electricity demand.
Consulting firm Grid Strategies released a report earlier this year analyzing data from utility regulatory surveys. Analysis reveals grid planner has nearly doubled his five-year load growth forecast over the past year, with investment in new manufacturing, industrial and data center facilities being the main driver Did.
“The U.S. power grid is not prepared for significant load increases,” Grid Strategies said in a report, noting that the recent surge in “data center and industrial development has suddenly pushed five-year load growth projections to “It's a surprisingly large increase.”
Executives at U.S. natural gas producers see rising demand for electricity and a boom in LNG exports as two key factors that will keep demand for their products going for years to come.
Written by Tsvetana Paraskova, Oilprice.com
Other top articles on Oilprice.com:
