U.S. natural gas is set to be a big winner in the AI boom with several dozen new gas-fired power plants expected to be built in America by the end of the decade, according to analysts.
A total of 80 new gas power plants could be constructed by 2030, adding about 46 gigawatts (GW) of new capacity, per estimates from energy data provider Enverus cited by the Financial Times. This would be 20% higher than the gas capacity additions in the past five years.
Yet, five years ago expectations were that America’s power consumption may have already peaked and would only flatline going forward.
AI and the data centers have upended these forecasts and now U.S. power demand is expected to rise each year in the coming years.
The surge in U.S. power demand due to the AI advancements and data center construction is set to unleash a new boom in the buildlout of natural gas power plants to provide reliable 24/7 electricity.
Big Oil is already proposing to help power the AI revolution and the enormous energy consumption with gas power plants. Chevron and Exxon are talking to power generators, energy providers, and data centers to provide what they describe as lower-carbon energy.
The incoming Trump Administration is expected to favor strongly natural gas to power America’s growing electricity demand and scrap some Biden-era environmental constraints on new natural gas generation.
Natural gas-fired power generation in the United States soared to a record high last year, driving up global gas demand.
In recent years, power demand in the United States, the single largest portion of which is delivered by gas-fired power plants, has surged and is expected to continue to soar with rising electrification and more electricity necessary 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 is driving demand for electricity.
By Tsvetana Paraskova for Oilprice.com
