– Executive from TC Energy predicts significant increase in natural gas demand due to data centers by 2030
– Data centers are driving increased global electricity demand, with companies like Amazon exploring new electrification methods
– Analyst forecasts growth in data center capacity and natural gas demand by 2030, driven by artificial intelligence technology.
An executive from TC Energy predicts that the demand for natural gas tied to energy-intensive data centers will increase by up to 8 Bcf/d by 2030, supporting the need for the fuel in North America. The company is upgrading its pipeline network to accommodate this growth and increase connections to distribution networks. Data centers are driving increased electricity demand globally due to the technology they support, such as AI and computing networks. Companies like Amazon Web Services are exploring electrification options, including nuclear power, to meet the power demand for data centers. Some data center operations are planned as part of hydrogen hubs, while others use private natural gas-fired power plants to supply electricity.
According to an analyst from Enverus Intelligence Research, data center capacity growth will lead to 14 GW of installed capacity by 2030, resulting in 2 Bcf/d of additional natural gas demand if served by gas-fired generation. Data centers, being among the least price sensitive power consumers, have the ability to pass on costs to consumers and are driven by competition in the AI industry. Attendees can learn more about the impact of data center electricity demand on the power generation sector by registering for Experience POWER Week in October.