The artificial intelligence boom is upending US electricity markets, and this week, more indications emerged that the US natural gas industry stands to profit.
The tech sector’s energy appetite drove the cost of generating capacity to record levels in the US’ largest power market, the PJM Interconnection, highlighting the value of dispatchable power — and particularly gas-fired generation.
And data center developer Crusoe finalized a deal this week to buy 29 natural gas turbines from GE Vernova — enough to supply 1 gigawatt of electricity — to help power its rapidly expanding AI infrastructure build-out.
“The greatest barrier we collectively face to our country's leadership on AI today is timely access to reliable electric power,” Advantage Data Centers Executive Vice President Jeff Tench told a US Senate Energy and Natural Resources Committee hearing Wednesday. “I have seen the scale and speed of hyperscale data center development grow dramatically. Five years ago, a 30 megawatt facility was considered large. Today, 100 MW is the starting point, with campus developments commonly reaching 500 MW or more, and we have multiple customers seeking 1 GW or more for AI infrastructure, which is the equivalent of all electrical power used here in Washington, DC.”
