American Natural Gas Needed for Spread of Data Centers

Alex Leif
Posted September 9, 2024
The skyrocketing energy needs of data centers supporting artificial intelligence (AI) is getting deserved attention in the media. Yet, the coverage is interesting, focusing on two solutions to keep the electricity grid from being overpowered by demand: coal, which emits high levels of carbon dioxide (CO2), and intermittent renewable energy.
If only there were an energy source in between – cleaner than coal and more reliable than renewables, providing rapid ramp-up ability and other attributes conducive to grid reliability.
Actually, there is: natural gas.
Enter natural gas: Natural gas is the best answer to rapidly rising electricity demand from data centers. It’s cleaner than coal, abundant and affordable. Using natural gas for power generation has helped the U.S. achieve the largest decline in carbon emissions since 2005, according to the Institute for Energy Research. The use of natural gas for electricity generation has contributed to 60% of CO2 emission reductions in that sector since 2005. Simply put, natural gas is the best way for data centers to power next-generation technology, such as AI, while minimizing emissions.
Cutting-edge technology: Technological innovations such as AI are requiring more and more data storage and power generation. The more we innovate, the more we generate massive amounts of data, and the more data storage space we ultimately need. In the past two years, 90% of the world’s data has been created. To meet data storage needs, the country needs to dedicate vast amounts of space and resources, in the form of data centers. As evidenced below, America has quickly become a global leader in data center construction and usage.
High-tech means higher power needs: The more data centers that are built for AI and other technologies, the more pressing the issue of power generation becomes. According to some estimates, by 2030, data centers could consume the same amount of electricity in the U.S. as some industrialized economies. If the chart above is any indication, that’s already well on the way to happening. America can get in front of the challenges posed by data centers – primarily the stress they could put on the electrical grid and contributing to increased CO2 emissions-- by relying on natural gas to fuel electricity generation.
Data centers need natural gas: Some data center owners, which need steady, uninterrupted power, are already beginning to recognize the reliability benefits of natural gas – and they’re a big reason why the demand for natural gas is expected to increase. With data centers projected to account for 8% of total U.S. electricity consumption by 2030, it’s no wonder why more and more power plants are turning to natural gas. Power generation needs from data centers will drive over 3 billion cubic feet per day of new natural gas demand by the end of the decade. The numbers show the data centers want and need natural gas.
And they are right to do so. Natural gas has obvious power generation and environmental benefits that have immediate applications in industrial sectors. America can be at the forefront of technological and industrial development while at the same time making important climate progress. Natural gas will get us there.
About The Author
Alex joins API after four years of working in public affairs consulting firms in Washington D.C., where he specialized in energy policy, earned media, issue and opposition research. He previously led communications campaigns for some of the nation’s largest energy producers. Alex earned his bachelor's degree in history from DePaul University.