The rapid growth of artificial intelligence (AI) is creating a significant surge in energy demand, particularly for data centers. Goldman Sachs estimates that around 47 GW of additional power generation capacity will be needed in the U.S. alone by 2030 to meet this demand. Approximately 60% of this new demand is expected to be met by legacy energy sources, primarily natural gas.

Data centers, which require massive amounts of reliable power, are driving this trend. In some regions, they are even reversing the shift towards renewable energy. For example, in Virginia, data center provider Vantage built a 100 MW natural gas power plant off the grid to power its facilities. Similarly, Microsoft gained approval to use its own private natural gas-fired power plant for data centers in Dublin.

This growing demand for natural gas is not yet reflected in many energy transition models. While natural gas has been viewed as a transition fuel towards a renewable energy future, the specific requirements of always-on data centers may extend its role. This trend could potentially impact current projections of stranded assets in the fossil fuel sector.

However, the increased use of natural gas for AI and data centers doesn't negate the importance of addressing emissions. The article suggests that Carbon Capture and Reuse (CCR) technology could play a crucial role in balancing energy security and climate goals. CCR can capture carbon emissions from natural gas plants and repurpose the captured carbon for various industrial processes.

The path forward likely involves a diversified energy mix, with renewables taking the lead where possible and natural gas with CCR technology filling gaps to ensure grid stability. This approach could help meet the growing energy demands of AI while working towards emissions reduction goals.