Energy Race Intensifies as Data Centers Demand Massive Gas Supply

November 22, 2024 | Utah Department of Natural Resources, Utah Government Divisions, Utah Legislative Branch, Utah


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Energy Race Intensifies as Data Centers Demand Massive Gas Supply
In a recent government meeting, officials discussed the increasing demand for natural gas driven by the expansion of data centers and AI clusters in the region. The conversation highlighted the logistical challenges these facilities face, particularly their preference for locations near international airports to facilitate quick access for personnel.

The meeting revealed that a single 1,200 megawatt data center could require up to 50 million cubic feet of gas daily, with multiple facilities potentially pushing the demand to over 1 trillion cubic feet per day. This surge in demand is prompting pipeline companies to explore solutions to alleviate existing bottlenecks in gas supply.

Participants acknowledged the dual nature of this growth; while it presents significant economic opportunities, it also poses challenges that will need to be addressed through legislative adjustments. The discussion underscored the urgency of developing infrastructure to support this burgeoning industry, particularly as natural gas remains the primary energy source available in the near term, with nuclear options still decades away.

The meeting concluded with a suggestion to consider establishing an additional gas hub to better manage supply and pricing, indicating a proactive approach to the anticipated energy demands of the future. As the region braces for this \"interesting ride,\" stakeholders are urged to prepare for the implications of this rapid industrial growth.

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