The rise of artificial intelligence (AI) and data centers is driving a surge in electricity demand in the United States, leading to a new boom in the construction of natural gas power plants.
U.S. natural gas is poised to be a major beneficiary of the AI boom, with analysts predicting the construction of several dozen new gas-fired power plants in America by the end of the decade. A total of 80 new gas power plants could be built by 2030, adding approximately 46 gigawatts (GW) of new capacity, according to estimates from energy data provider Enverus cited by the Financial Times. This represents a 20% increase compared to gas capacity additions in the past five years.
Five years ago, expectations were that America's power consumption might have already peaked and would only remain stable. However, AI and data centers have significantly altered these forecasts. Now, U.S. power demand is projected to rise annually in the coming years. The surge in U.S. power demand driven by AI advancements and data center construction is anticipated to fuel a renewed boom in the building of natural gas power plants. These plants are expected to provide reliable 24/7 electricity.Big Oil companies are already proposing to contribute to powering the AI revolution and its substantial energy requirements through gas power plants. Chevron and Exxon are engaging with power generators, energy providers, and data centers to offer what they describe as lower-carbon energy. The incoming Trump Administration is anticipated to strongly favor natural gas as a means of meeting America's growing electricity demand and potentially revoke some Biden-era environmental restrictions on new natural gas generation.Natural gas-fired power generation in the United States reached a record high last year, contributing to a rise in global gas demand. In recent years, power demand in the United States, where gas-fired power plants supply the largest share of electricity, has surged and is expected to continue this upward trend due to increasing electrification and the electricity needed to power and cool data centers. U.S. power-generating companies are announcing plans for the highest volume of new natural gas-fired capacity in years as the AI boom drives demand for electricity
NATURAL GAS AI POWER PLANTS ENERGY DEMAND ELECTRICITY
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