Natural Gas Is America’s Strategic Advantage Fueling The AI Race

Authored by Karen Harbert via RealClearEnergy,

Today, countries around the globe are in a new race for primacy of artificial intelligence (AI) that will define economic and technological competition in the 21st century. As global powers like China accelerate investments, America’s ability to lead hinges on its capability to rapidly scale compute capacity, a feat dependent on abundant and available energy. While many energy sources will play a role, there is one that can provide the reliability, flexibility, and scalability to keep America at the head of the race: natural gas.

Advancing AI infrastructure means providing the energy to support exponential computational growth. From California to Texas to Virginia, data centers are popping up at an unprecedented rate, each requiring extensive power infrastructure. Goldman Sachs Research estimates data center power demand will grow by 160% by 2030.

Without adequate energy infrastructure, America’s AI ambitions risk being throttled. The race for AI primacy depends on our ability to scale our energy infrastructure to meet the growing demand while maintaining reliability, affordability and safety for data centers, for businesses and manufacturing and for our families.

Of all the available energy sources in the U.S., natural gas is uniquely positioned to support the rapid demand growth required for America to lead the way in AI without jeopardizing reliability or affordability. With more than 2.8 million miles of pipeline networks, extensive storage systems, and abundant natural gas resources, the U.S. natural gas industry is strategically placed to serve as the backbone of a scalable energy system that can reliably meet surging energy demands.

We currently have a front row seat to history with the opportunity to accelerate the buildout of the vast natural gas pipeline system to meet the increasing energy demands from data centers. Pipeline development projects help to ensure consistent and reliable energy delivery to new large demand centers and existing consumers.

Every year, more than 21,000 businesses sign up to use natural gas for their manufacturing processes, heating needs, and operational tasks. Its cost-effectiveness is unmatched, with natural gas saving commercial and industrial customers more than half a trillion dollars over the last decade.

Data centers value reliability of supply at a premium: 78% of surveyed data centers experienced power outages between 2017 and 2020, with unplanned downtime costing some facilities more than $100,000 per incident. Such losses of power risk corrupting data, halting critical services, and even melting down servers. With only one in 650 natural gas customers expected to experience a planned or unplanned natural gas outage in any given year, natural gas is a clear solution.

Natural gas continues to drive clean energy in the power sector. Since 2005, natural gas has been responsible for 60% of the CO2 emission reductions in electricity generation. As the energy sector advances and innovates, natural gas will continue to play a vital role in driving sustainable progress.

The partnership of natural gas and AI can position American business and manufacturing at the forefront of innovation. It can increase living standards and fuel economic growth in ways unseen since the Industrial Revolution. It will strengthen our national security and keep America as a production giant on the global stage.

The innovative relationship between AI and natural gas also creates a virtuous cycle – while natural gas fuels AI, the technology itself provides vast opportunities to help make natural gas distribution smarter, more efficient and cleaner. Advanced AI can optimize energy exploration, enhance system repairs and improvements, and create a cleaner, more efficient and less costly natural gas system. Further innovation in renewable natural gas and hydrogen blending will also continue to advance a more efficient, lower-emissions energy system.

The U.S. has always risen to the challenge of global competition through innovation, resilience and strategic investment. In the 1960s, it was about reaching the moon. Today, it’s about leading on artificial intelligence, maximizing our economic capabilities, and winning that race against competitors like China. According to a report from the Center for Strategic and International Studies, U.S. natural gas provides the critical competitive advantage that America can utilize to get ahead.

Natural gas is the key to ensuring America wins in this race. Policymakers must recognize the critical intersection of energy and AI competitiveness. Accelerating the expansion and modernization of natural gas infrastructure is needed to keep pace with growing demand. Therefore, streamlined permitting reform is now vital to support American innovation. The stakes are high, and the competition is fierce, but with natural gas fueling our advancement, America is well-equipped to cross the finish line first.

Karen Harbert is President and CEO of the American Gas Association.