Goldman Sachs Sees 30% Surge in Data Center Power Demand

Goldman Sachs is revising its forecasts for natural gas demand growth driven by data centers, significantly increasing its estimates to 10-11 billion cubic feet per day from 2025 to 2030. This upward revision comes after the investment bank's utilities and power research team increased total data center power forecasts for 2030 by approximately 30 percent to 108 gigawatts.

The midstream pipeline group has declined 12 percent from its mid-May peaks, creating an attractive entry point for investors according to Goldman Sachs. The firm highlights Williams (), Kinder Morgan (), and Kodiak Gas () as top picks in the space, citing their exposure to natural gas demand growth from data centers.

Williams Companies reported second-quarter revenue of $3.05 billion, exceeding analyst expectations, while adjusted earnings matched forecasts. RBC Capital raised its price target on the company's stock following the results.