Fueling Data Centers – And Keeping Energy Costs Steady
Demand for energy in the United States is growing thanks to a reshoring of manufacturing and the great global AI race. If America hopes to continue to lead the way economically and technologically, it is imperative that we act quickly to help ensure a stable supply of reliable, affordable energy to fuel our families, our businesses, our economy and our allies
Thankfully, there is no shortage of natural gas resources in the United States with which to accomplish this goal. America has more than 3,353 trillion cubic feet of technically recoverable natural gas, plus more proved reserves, enough to meet our needs for a century to come. Robust supplies plus a highly reliable gathering, transmission and distribution network comprised of almost 2.8 million miles of pipeline have made natural gas the foundation fuel for dependable and affordable energy service, including for manufacturing and new data centers.
It’s important that production and delivery infrastructure keep pace with new demand, which can help keep prices low and relatively stable. Consider LNG exports, which America now leads the world in. These exports have surged dramatically in recent years, from 0.5 Bcf/day in 2016 to 11.9 Bcf/day in 2024, even as domestic demand for natural gas has reached record levels. Now consider prices. After adjusting for inflation, natural gas prices now sit at barely over half of their 2015 average, and at under an eighth of their height in 2005. The lesson is straightforward: when America’s natural gas utilities and suppliers can build and connect supplies to customers, the market satisfies growth, benefiting all consumers.
Steady demand paired with storage and delivery infrastructure can also help smooth prices. For example, predictable year-round offtake from LNG projects gives the market confidence to plan drilling, storage, and transport. That spreads fixed costs, supports timely investment, and reduces the kind of price swings that occur when development turns on and off. Data centers may fit a similar profile. Their large-scale and consistent energy needs require a reliable supply of energy, which is why many are turning to natural gas. That reliability helps producers and utilities invest ahead of need, which benefits everyone on the system by smoothing out the relative size of spikes in demand.
The key to all of this is ensuring that the appropriate new infrastructure is in place when we need it. The constraint today is often the ability to move energy from where it is produced to where it is needed. Congress should act on sensible permitting reform that shortens duplicative reviews and reduces endless courtroom delays while staying fuel-neutral so every technology can compete. Streamlined approvals for pipelines, compression, and storage lower delivered costs and improve reliability for consumers even as new industrial and digital loads come online. This would be a major win for households, manufacturers and for the data center infrastructure supporting the American economy of the future.
Artificial intelligence is only one of several forces likely to lift energy demand in the coming years. Maximizing the potential of any major effort to reindustrialize will require the same infrastructure and energy as supporting data centers. Our domestic natural gas resources and infrastructure are our secret weapon enabling us to do both while keeping energy affordable for customers. With abundant American natural gas, steady demand that encourages investment and infrastructure built on a modern timeline, AI data centers are not a threat to affordability. They are a catalyst for planning ahead so that energy remains safe, affordable, and reliable for the long run.