The construction of data centers across the United States is expected to surge by 2030, requiring an additional 47 gigawatts of power capacity. This demand will be largely met by natural gas, creating opportunities for oil and gas suppliers to grow.
Rapid growth in technologies like generative AI is driving electricity consumption to unprecedented levels, prompting major oil companies to enter the broader power market. The US energy sector has invested heavily in new natural gas infrastructure, delaying the retirement of fossil-fuel power plants.
Midstream natural gas transmission companies are poised to benefit from this shift, with established pipeline networks capable of delivering consistent and efficient energy to large-scale data centers. Strategic partnerships between technology companies and energy providers are also crucial for creating sustainable AI data centers.
Key advancements include battery technologies that store surplus energy from renewable sources, providing reliable backup power during outages. Carbon capture and storage (CCS) technologies are also being applied to reduce AI data centers’ environmental footprint.
The intensifying competition for electricity has led some major technology companies to reconsider their climate-focused commitments. The collaboration between the energy and technology sectors is fostering innovation and driving towards a more sustainable future in both landscapes.
Building an AI data center facility requires careful planning, working with trusted collaborators, and considering factors such as site selection, infrastructure, power, cooling, networking, tax considerations, security, and compliance.
Source: https://btlaw.com/en/insights/alerts/2025/growing-role-of-natural-gas-in-supporting-hyperscale-ai-data-center-development