The ability of America to compete in the global artificial intelligence (AI) race may be determined less by processing power than by the energy necessary to maintain it.
The AI race is undoubtedly an energy race, and one of the things we’ve stated is that in order to win the AI race, you must first win the power race, according to Nathan Lord, head of the nonprofit group Shale Crescent USA. But the only way to win the power race is to emphasize a consistent fuel supply.
The International Energy Agency (IEA) estimates that between now and 2030, data center electricity demand might make up as much as half of all new U.S. power usage.
According to a forecast published in April by Goldman Sachs, natural gas is expected to supply 60% of the increase in power consumption caused by AI and data centers.
According to Lord, natural gas is the only fuel type that can be grown large enough, installed quickly enough, and yet be reasonably priced for data centers.
Data centers have traditionally been constructed close to fiber hubs for many years, but Lord thinks this has to change.
He stated, “We’ve spent the last ten years building where the fiber is rather than where the power is located, and that’s introducing a lot of issues.” ” — The safest and most dependable location for energy-intensive data centers is on top of the natural gas supply, not 500 miles away or in areas of the United States without energy.
According to Lord, the Texas Gulf Coast and the Shale Crescent region, which includes Ohio, West Virginia, and Pennsylvania, provide over 80% of the nation’s natural gas supply. Shale Crescent USA supports high-wage manufacturing in these areas.
According to him, the Shale Crescent region is well-positioned to meet future demand for data centers. One of the businesses preparing for this change is Chevron. Earlier this year, the business announced a collaboration with Engine No. 1 and Chevron U.S.A. Inc. to form a new venture focused on producing natural-gas-powered energy solutions for data centers.
China has significantly increased its energy production in the meanwhile. Despite overtaking America just 15 years ago, the nation currently generates 2.5 times as much power than the United States, according to Lord. “America can’t out-AI China if China out-powers us, so the U.S. must prioritize developing reliable power,” stated Trump.
