Big Tech's gas bet could blow up in everyone's face
Amazon, Google, Meta, and Microsoft all bet big on cheap natural gas to power their AI data centers, building gigawatt-scale plants in Texas and Louisiana instead of waiting on the grid. But energy research firm Noreva says that bet is shakier than it looks: surging AI demand plus tightening supply and rising LNG exports could send prices in some U.S. hubs tripling past $10 per million BTUs, up from roughly $2 to $4.50 today. Since fuel is about half the cost of running a gas plant, that spike could jack up AI token costs or spill into everyone's electricity bill.
Nothing says "responsible energy strategy" like betting the AI boom on a fossil fuel you don't actually control the price of.