America’s AI Edge Relies on Natural Gas
December 19, 2024
Reality has already started to creep into the energy transition: Renewables aren’t sufficient to power a globally competitive Artificial Intelligence industry in the United States. Natural gas is needed.
Driving The News: Instagram parent company Meta announced last week it’s building its largest AI data center in Louisiana, an investment of $10 billion.
- In response, utility provider Entergy announced it’s “fast-tracking” plans to build three natural gas power plants capable of generating 2,262 Megawatts.
- Meta also plans to build 1,500 Megawatts of renewable energy sometime in the future.
Our Opinion: Society at-large broadly recognizes that AI data centers will continue to gobble up huge amounts of electricity. Reasonable analysts and policymakers on both sides of the aisle realize that intermittent forms of energy are not up to the task. Since the United States is the largest natural gas producer in the world, natural gas will pick up the reliable power slack. We’re lucky we have an incoming administration that doesn’t need to be convinced of the benefits.