Natural Gas Consulting in Times of AI

Natural gas is seeing significant demand from the immense energy needs of artificial intelligence and data centers. As renewable energy sources do not suffice to meet this demand, which is expected to grow 20% by 2030, power companies turn to gas to meet their needs. Against this backdrop, natural gas consulting services see an increase as well, as they can provide expert insight into diversifying resources and helping organizations devise their procurement and implementation.

The Current Situation of Natural Gas in the U.S.

After ten years of flat power growth in the U.S. energy companies are pivoting to quickly secure energy as the rise of AI coincides with the expansion of domestic semiconductor and battery manufacturing as well as the electrification of the nation’s vehicle fleet.

AI data centers alone are forecast to add about 323 terawatt hours of electricity demand in the U.S. by 2030 —seven times greater than New York City’s current annual electricity consumption. This surge in power demand represents a challenge for the big tech companies, which have committed to powering their own data centers with renewables in an attempt to reduce carbon emissions. However, solar and wind may not be fit to meet the electricity load. Since they depend on variable weather, this might hinder their ability to respond to the power needs.

In lieu of this, the aforementioned increasing electricity loads may require an energy source that can meet spiking demand when renewables cannot generate enough power. Therefore, the natural gas industry is appointed to serve as the preferred choice.

Interpreting the Forecast

Gas demand is forecast to increase by 10 billion cubic feet per day by 2030. These are admittedly high growth rates for a commodity. However, the predictions vary as analysts are just starting to piece together what data centers might mean for natural gas. Some add anywhere from 0.9 to 9.3 gigawatts of capacity over the next 25 years and say gas turbines will be critical to fill gaps. An interesting addition is that the turbines are likely to be dual use and to take clean hydrogen at some point.

While renewables are on the rise in efforts to slash carbon emissions and damage to the planet, a middle-ground solution like making fossil fuel cleaner is where experts see the trend. 

Another potential alternative could be nuclear power, which provides carbon-free energy, however, such new and advanced technology is likely a decade away from having a meaningful impact. As a result, natural gas has an important role to play in the upcoming years.

For tech organizations and businesses, this plethora of options means that they need to thoroughly assess their needs and forecasts in order to make the smartest procurement decisions and grow while both keeping their costs in check and remaining sustainable.

Onyx Power & Gas: Natural Gas Consulting Programs

Natural gas consulting services like those offered by Onyx Power & Gas empower businesses to not only assess the current landscape of energy consumption, but also implement solutions that will be effective in the long term. Our programs help businesses foster long-term sustainability by providing multiple natural gas consulting solutions.

Onyx Power & Gas offers a full scope of natural gas consulting programs that underpin the energy procurement process for enterprises. The company’s expert consultants collaborate with clients to tailor strategies that align with specific business goals, risk tolerance, and market conditions. From reviewing procurement structures to implementing energy efficiency measures, Onyx Power & Gas provides comprehensive solutions to mitigate the impact of energy price volatility on businesses.

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