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| By Sean Brodrick |
AI isn’t just changing how we live and work — it’s transforming how we power the future.
And as the use of AI soars, it’s putting an unprecedented strain on the American power grid.
That leads to a “shocking” investment opportunity — electric power generation.
The opportunities could power up your profit potential.
Let’s start with the fact that AI computing demands up to 100 times more electricity than traditional workloads.
That’s because large language models like GPT-4 need massive power for training — reportedly tens of megawatt-hours just to bring one model online.
AI inference — running these models at scale — is growing even faster.
Every chatbot, virtual assistant and automated helpdesk you interact with adds to the demand.
And that demand is multiplying.
AI is fueling a historic boom in data center construction, with hyperscale centers now guzzling between 100 and 150 megawatts, each — triple what they needed five years ago.
Goldman Sachs estimates that 47 gigawatts of new electricity will be required just for U.S. data centers by 2030.
Forty-seven gigawatts are enough to power 35 million homes.
Put another way? By 2030, data centers could use up to 8% of all U.S. electricity — compared to just 3% today.
Globally, it’s no different.
The International Energy Agency says data centers, AI and crypto combined could chew through 1,050 terawatt-hours (TWh) of power by 2026 — up from 460 TWh in 2022.
That’s more electricity than some countries use in a year.
All this raises a critical question:
Where Is That Power Going to Come From?
While renewables like solar and wind are crucial for the long haul, they’re not always reliable when you need electricity 24/7 — which is non-negotiable for AI infrastructure.
Nuclear is one solution, but it takes 10 to 15 years to bring a plant online.
Natural gas? It’s fast, flexible and ready now.
You can build a gas plant in two to four years.
It plugs into the existing grid.
It’s cost-effective — much of it rides in as a byproduct of oil drilling.
And perhaps most importantly, it runs around the clock.
Goldman Sachs projects we’ll need an additional 3.3 billion cubic feet per day of natural gas to meet just the incremental AI-driven demand.
Some estimates say gas could supply 60% of the power needed to fuel the next generation of data centers.
The Bottom Line
The AI revolution isn’t just about software — it’s a megatrend that’s rewriting the energy equation.
As America’s tech titans scale up their AI ambitions, natural gas is stepping in as the energy backbone to keep the lights on and the algorithms running.
Want to invest in this trend?
You’re in luck, I just put together several reports with the individual companies set to rally because of this unstoppable force.
But if buying individual stocks is too risky for you, check out the First Trust Natural Gas ETF (FCG).
It holds a basket of leading natural gas producers positioned to benefit from this explosive surge in demand.
FCG gets a “C+” from Weiss Ratings, has an expense ratio of 0.6% and sports a fat dividend yield of 3.63%.
Here's a weekly chart of FCG …
You can see that FCG dipped hard with the rest of the market. Now, it is roaring to the upside.
I have plenty more ideas on how to make the most of AI’s rip-roaring power demand.
Check out this presentation for more.
In this race to the future, natural gas could push profits into overdrive.
All the best,
Sean
