Hyperscalers' Natural Gas Bet May Backfire as Prices Threaten to Triple

Hyperscalers such as Amazon, Google, Meta, and Microsoft are heavily investing in natural gas to power their data centers. However, a recent report by Noreva suggests that this bet may not pay off.

Natural gas prices could triple in certain regions due to declining supply growth and rising exports of liquefied natural gas. This would significantly increase the cost of electricity for hyperscalers' data centers, which represent about half of their fuel costs.

Peter Gardett, CEO of Noreva, believes that hyperscalers are underestimating the risks associated with natural gas prices. 'I think everyone in the energy markets has been lulled into a sense that gas prices can't go up,' he said.