The Fort Worth Press - At 'Davos of energy', AI looks to gas to power its rapid expansion

USD -
AED 3.672504
AFN 66.503991
ALL 80.629676
AMD 365.091035
AOA 917.000367
ARS 1491.937897
AUD 1.417435
AWG 1.80125
AZN 1.70397
BAM 1.691649
BBD 2.00813
BDT 123.418242
BHD 0.375989
BIF 2985.079791
BMD 1
BND 1.277602
BOB 11.849673
BRL 5.083304
BSD 0.997016
BTN 94.875232
BWP 13.457596
BYN 2.968819
BYR 19600
BZD 2.00519
CAD 1.39545
CDF 2262.50392
CHF 0.80802
CLF 0.023212
CLP 913.560396
CNY 6.747604
CNH 6.743285
COP 3142.844787
CRC 453.228387
CUC 1
CUP 26.5
CVE 95.372573
CZK 20.982104
DJF 177.546166
DKK 6.46804
DOP 58.20179
DZD 132.308956
EGP 49.555853
ERN 15
ETB 160.923669
EUR 0.86495
FJD 2.20855
FKP 0.740916
GBP 0.741235
GEL 2.610391
GGP 0.740916
GHS 11.700039
GIP 0.740916
GMD 73.503851
GNF 8756.649224
GTQ 7.607144
GYD 208.588851
HKD 7.84315
HNL 26.723176
HRK 6.518804
HTG 130.363707
HUF 314.060388
IDR 17801
ILS 2.99985
IMP 0.740916
INR 95.210504
IQD 1306.058902
IRR 1375550.000352
ISK 123.340386
JEP 0.740916
JMD 158.335856
JOD 0.70904
JPY 157.80604
KES 129.014401
KGS 87.450384
KHR 4049.647537
KMF 426.00035
KRW 1407.890383
KWD 0.30866
KYD 0.830861
KZT 467.275008
LAK 22510.919863
LBP 89282.792025
LKR 334.420274
LRD 179.959348
LSL 16.197552
LTL 2.95274
LVL 0.60489
LYD 6.341738
MAD 9.29222
MDL 17.337716
MGA 4254.638239
MKD 53.215413
MMK 2099.750695
MNT 3597.347644
MOP 8.056654
MRU 40.080439
MUR 47.070378
MVR 15.450378
MWK 1728.841413
MXN 17.13635
MYR 4.090104
MZN 63.905039
NAD 16.197552
NGN 1364.860377
NIO 36.690741
NOK 9.51237
NPR 151.800372
NZD 1.696641
OMR 0.382693
PAB 0.997016
PEN 3.376465
PGK 4.406003
PHP 60.705038
PKR 276.796523
PLN 3.719205
PYG 5928.296501
QAR 3.644596
RON 4.536304
RSD 101.492021
RUB 81.892834
RWF 1466.072741
SAR 3.758633
SBD 8.065696
SCR 14.449077
SDG 600.503676
SEK 9.480804
SGD 1.278104
SLE 24.603667
SOS 569.822255
SRD 37.866504
STD 20697.981008
STN 21.191022
SVC 8.723782
SZL 16.194265
THB 33.050369
TJS 9.197509
TMT 3.51
TND 2.929032
TRY 47.697504
TTD 6.757774
TWD 32.250604
TZS 2639.622886
UAH 44.653894
UGX 3714.050945
UYU 40.133201
UZS 11924.058297
VES 755.762404
VND 26204.5
VUV 119.414824
WST 2.733661
XAF 567.363231
XAG 0.015731
XAU 0.00023
XCD 2.70255
XCG 1.796912
XDR 0.705618
XOF 567.363231
XPF 103.152705
YER 238.403589
ZAR 16.14632
ZMK 9001.203584
ZMW 18.818492
ZWL 321.999592
  • CMSC

    0.0240

    21.744

    +0.11%

  • CMSD

    -0.1600

    21.82

    -0.73%

  • BCC

    2.3400

    86.6

    +2.7%

  • RIO

    1.4500

    101.1

    +1.43%

  • BCE

    -0.0200

    22.75

    -0.09%

  • RBGPF

    0.7600

    70.5

    +1.08%

  • VOD

    0.1900

    16.19

    +1.17%

  • RYCEF

    0.2300

    20.85

    +1.1%

  • RELX

    0.0485

    35.52

    +0.14%

  • NGG

    0.4700

    80.88

    +0.58%

  • JRI

    0.1500

    12.81

    +1.17%

  • GSK

    0.7900

    52.96

    +1.49%

  • BTI

    0.6000

    59.33

    +1.01%

  • BP

    -0.6000

    41.63

    -1.44%

  • AZN

    1.4100

    161.42

    +0.87%

At 'Davos of energy', AI looks to gas to power its rapid expansion
At 'Davos of energy', AI looks to gas to power its rapid expansion / Photo: © AFP

At 'Davos of energy', AI looks to gas to power its rapid expansion

Natural gas took center stage this week at the world's largest energy conference, as major market players discussed how to power the rise of artificial intelligence.

Text size:

In the halls of CERAWeek, where around 10,000 experts and executives converged, attendees debated the fastest way to feed the burgeoning technology's massive energy demands, despite carbon neutrality pledges.

"Gas-fired power, for sure, is critical" to the development of artificial intelligence (AI), Laurent Ruseckas of S&P Global told AFP on the sidelines of the summit.

Dozens of sessions were held addressing how the gas sector can help satisfy AI's insatiable thirst for electricity, or how AI-driven software can, in turn, help the sector optimize its production.

The data centers on which AI -- and cloud technology more broadly -- rely consume vast amounts of electricity, which often has a large carbon footprint.

Natural gas is already the third-largest energy source used by data centers globally, covering 26 percent of demand, according to International Energy Agency figures.

Coal -- a fuel that emits the highest levels of greenhouse gases -- has the largest share, followed by renewable energy, according to the IEA.

Since 2016, the United States has ramped up its natural gas production, and its Liquefied Natural Gas (LNG) exports have increased 30-fold in that period, according to the US Energy Information Administration (EIA).

With US President Donald Trump throwing his weight behind fossil fuels -- often sidelining renewable energy -- that trend is only expected to deepen.

This "surge in gas... is coincident and driven by the need to satisfy the growth in AI," said Eric Hanselman, an energy analyst at S&P Global.

Charles Riedl, president of industry group the Center for Liquefied Natural Gas (CLNG), told AFP "the reliability and dispatch ability of gas is second to none."

CLNG represents several US industry giants, including Cheniere Energy, Chevron, and ConocoPhillips.

More than a third of US gas capacity directly powers data centers in the United States, according to a recent study by Global Energy Monitor, a think tank.

- 'Not sustainable' -

Some experts, however, remain skeptical about the long-term viability of this model.

"Will gas play a role in the AI data center future? Yes. But I'm not so sure it's to the same degree as many predict," said Mark Brownstein, senior vice president of the Environmental Defense Fund.

"My belief is that that kind of approach to project development is not sustainable," he added.

The issue, he said, is that certain projects are "expensive to run," and "the pollution from them is also considerable."

The primary component of natural gas is methane, which, when burned, releases CO2 -- the leading greenhouse gas responsible for global warming.

Gas fields, LNG tankers, pipelines, and distribution lines also give rise to massive leaks of methane -- a gas with an even greater global warming potential than CO2.

In West Virginia, a project to build a gas-fired power plant intended solely to supply a massive data center is facing opposition from many residents concerned about its health and environmental impacts.

It is far from the only one.

Tech giants had previously pledged to achieve carbon neutrality by 2030 or 2040. However, the explosive growth in demand for AI has led them to set these promises aside, according to S&P Global's Ruseckas.

"That's gone out the window," he says. "Gas is the only quick way to get power quickly, which is what the data centers need."

Another option on the table is nuclear power, which already accounts for 15 percent of global electricity consumption by data centers.

The rapid growth of AI and its surging energy demand is "making nuclear really part of the solution set now," said Ho Nieh, chairman of the US Nuclear Regulatory Commission, at CERAWeek.

Nuclear reactors take significantly longer to build than gas turbines, however.

In January, tech giant Meta announced agreements with three US nuclear energy companies, making it one of the largest corporate buyers of such energy in the United States.

The 6.6 gigawatts of power those plants would provide, however, is not expected to be fully online until 2035.

D.Ford--TFWP