Buy This Natural Gas Toll Booth Even If AI Stutters

By Sean Brodrick Reviewed by: Jim Nelson

In the Nov. 3 elections, there were plenty of winners and losers. To me, the biggest loser is obvious. I’m talking about artificial intelligence.

According to Ballotpedia, AI was on the ballot in 41 local elections. In 40 of them, voters favored restrictions on data-center development.

This is roiling the stock markets, as investors reassess whether the much-hyped AI buildout is derailed. 

The fallout extended to stocks of companies that supply AI infrastructure, including turbines, cables and more.

I think much of this selling is overdone, an algo-overreaction driven by headlines. 

It will sort itself out soon enough.

In the meantime, some stocks got dumped in the dustbin that should dazzle investors soon enough.

One group that got thrown out with the bathwater is natural gas stocks. 

AI has an enormous appetite for electricity. And natural gas is increasingly being called upon to feed it.

Before the midterm elections, that set the stage for what could be one of the biggest natural gas demand booms in American history.

Now that the results are in, is the natural gas boom doomed?

Nope. My view is that even if political opposition puts a serious dent in AI's expansion plans, natural gas demand could still more than double over the next four years.

And I have a way for you to profit from that growth without betting everything on AI.

The AI Natural Gas Boom by the Numbers

According to Bloomberg Intelligence, U.S. data centers are poised to consume approximately 8 billion cubic feet of natural gas per day (Bcf/d) by 2030.

That's nearly triple the approximately 2.8 Bcf/d consumed in 2025, or an additional 5.2 Bcf/d of demand — nearly 1.9 trillion cubic feet of natural gas annually.

Natural gas has advantages over competing power sources … 

Solar panels don't work at night, and wind turbines depend on favorable weather. 

Nuclear power is reliable, but building new reactors takes years.

Natural gas power plants can deliver dependable electricity using proven technology. 

That’s why some data-center operators are installing their own natural gas generators, bypassing lengthy waits for new grid connections.

But Voters Are Pushing Back

In the midterms, voters pushed back against data centers, as concerns about enormous electricity use, water consumption, noise and more reached the boiling point.

Political opposition could delay projects, increase construction costs and force developers to relocate.

That makes Bloomberg's forecast of 8 Bcf/d by 2030 considerably less certain.

But I crunched some numbers. Even if political opposition reduces Bloomberg's forecast by 25%, natural gas demand from data centers would still more than double!

Bloomberg's base case calls for 8 Bcf/d by 2030. Suppose local opposition canceled enough projects to cut that forecast to 75% of its original level. That leaves us with 6 Bcf/d.

Compared with approximately 2.8 Bcf/d in 2025, that's an increase of 114%.

And AI demand is just a piece of a much larger pie. 

Total U.S. natural gas demand is projected to rise 37% to 141.1 Bcf/d between now and 2030, according to Wells Fargo. That includes demand from AI data centers.

As part of that, demand from liquefied natural gas (LNG) exports is forecast to rise 60% over the same time frame. Other uses account for about 18% of projected demand.

Against that backdrop, a potential 25% drop in AI demand growth for natural gas is just a sliver of total demand growth.

While there are no guarantees, you can see how much growth is potentially available.

Add it all up, and I’m very bullish on natural gas, even if AI demand slows down. And that brings me to my recommendation.

A Pipeline Toll Booth That Pays You to Wait 

Consider the Alerian MLP ETF (AMLP). 

It’s an easy way to invest in America’s booming energy infrastructure industry. 

The fund holds a basket of master limited partnerships (MLPs) that own and operate pipelines, storage facilities, processing plants and other critical energy infrastructure.

Its holdings include Enterprise Products Partners (EPD), MPLX (MPLX) and Energy Transfer (ET). 

These companies collect fees for transporting and processing oil, natural gas and natural gas liquids — essentially operating toll roads for America’s energy industry.

And because many of these businesses operate under long-term, fee-based contracts, they can generate substantial cash flow even when energy prices fluctuate.

AMLP is trending higher and recently pulled back. That’s a buying opportunity. 

Here’s the icing on the cake: AMLP pays a hefty quarterly distribution, with a recent yield of 7.54%. 

So, you get a generous income stream alongside the potential for capital appreciation.

And unlike investing directly in individual MLPs, AMLP simplifies tax reporting by issuing a standard Form 1099 rather than complicated K-1 forms.

The bottom line: The natural gas boom is going to pick up steam. This pipeline ETF is an excellent way to play it.

All the best,

Sean

P.S. Another, much different, asset has been freefalling since the election. And my colleague Juan Villaverde says the bottom is in. 

You’ll want to check out why that matters and how to play it here.