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AI Fueling Natural Gas Grab, Critics Warn
4 Apr
Summary
- Tech giants are building massive natural gas power plants.
- AI fever is driving a scramble for natural gas supplies.
- Turbine shortages may delay new power plant orders until 2028.
The burgeoning AI industry's immense power demands are driving a significant surge in demand for natural gas. Major tech companies, including Microsoft, Google, and Meta, are establishing large-scale natural gas power plants across the southern United States, notably in Texas and Louisiana.
This intense focus on natural gas has created substantial supply chain issues. A critical shortage of turbines is predicted, with Wood Mackenzie forecasting a 195% price increase by the end of 2026 relative to 2019 prices. Companies face delays, with new orders not expected until 2028 and delivery times stretching to six years.
