As the demand for electricity continues to rise in the United States, top natural gas producers and pipeline operators are expecting accelerated approval and development of natural gas infrastructure. This comes as American ratepayers have seen electricity prices increasing at a faster pace than U.S. inflation over the past few years, with projections indicating this trend will continue through 2026.
Despite the rising consumer bills, the United States is currently producing a record amount of energy, with increasing output of oil and natural gas. This abundance of energy could potentially help lower electric utility bills for consumers, particularly if there is enough gas available to power data centers and manufacturing facilities, which are the primary growth drivers of U.S. power demand.
According to EQT Corp, one of America’s top natural gas producers, the spiking energy costs will likely prompt various U.S. states to approve additional gas infrastructure. This sentiment is echoed by industry experts like Cynthia Hansen from Enbridge and Chris James from Engine No.1, who believe that additional gas infrastructure will help bring down elevated consumer energy bills.
States like Texas, Pennsylvania, Ohio, and Louisiana, which are key gas-producing states, are expected to lead the race in adding more gas infrastructure. These states are attractive to Big Tech companies looking to build data centers due to the nearby gas supply and regulatory environment.
While gas infrastructure development has faced opposition in recent years, the Trump Administration’s support for American energy dominance and increased production could pave the way for new infrastructure projects to meet the growing electricity demand.
Analysts are optimistic about the role of natural gas in feeding America’s AI boom, with onshoring of manufacturing activity and AI-related data centers driving an increase in U.S. electricity consumption. Goldman Sachs projects a 2.4% annual rise in electrical power demand through 2030, with natural gas positioned to capture most of this growth.
In conclusion, natural gas is expected to play a significant role in meeting the rising electricity demand in the United States. While renewables will also have a role in powering next-generation data centers, natural gas remains a flexible and abundant domestic resource that is poised to benefit from the country’s increasing energy needs.
