Rising Gas Prices Threaten AI Data Centers, Coal Could Fill the Gap

A recent study by Wood Mackenzie predicts that natural gas prices will rise significantly over the next decade, from as low as $2 per million BTU to around $5 per million BTU.

This increase in price comes at a critical time for AI data centers, which are projected to require substantial amounts of electricity in the coming years. Bloomberg forecasts that demand for power will surge by 52% by 2030 and 83% by 2035, with some projects requiring as much energy as a mid-sized city.

The rising costs of natural gas could have significant implications for businesses and consumers, with every $1 increase in national gas prices costing US$54 billion annually. However, the Interior Department has reported that there is enough coal in federally managed public lands to last at least 600 years, providing a potential solution to mitigate the effects of higher energy costs.

The ability of companies to invest in maintaining and improving the coal fleet is crucial for maintaining affordable energy options. The president of the Market Institute, Charles Sauer, notes that access to various sources of energy, including coal, is vital for America's ability to obtain affordable energy.