Natural Gas and AI Data Centers: A Unique Political Opportunity for Pennsylvania
Artificial Intelligence (AI) is rapidly growing, impacting various industries and becoming a part of our everyday lives. AI is used by Netflix to personalize user recommendations, and more than half of American citizens use voice assistants to access information. Additionally, 50% of global organizations reported adopting AI in at least one business area in 2022.
The Role of Data Centers in the AI Revolution
Data centers across the United States, which process AI, cryptocurrency, e-commerce, and cloud computing, are responsible for this technological revolution. These data centers consume a significant amount of electricity, creating a demand on the power grid that hasn't been seen in decades. For instance, an AI Google search requires ten times the energy of a regular Google search. Furthermore, all the current data centers worldwide combined use more power than all but 16 countries.
By 2030, AI alone is predicted to increase US electricity demand by 20%. Goldman Sachs projects that natural gas will meet 60% of this demand. Given the current state of our power grid, Microsoft leadership believes we are bound to reach a limit. Natural gas-powered electricity is increasingly becoming the preferred choice to provide steady, reliable, and affordable power to these facilities.
Pennsylvania's Unique Position
As the second-largest natural gas production state, Pennsylvania has a unique opportunity to capitalize on this situation. By embracing natural gas, the state could benefit from job creation, investment, and powering our high-tech future. This would be beneficial for trade unions, high-tech professionals, and local communities who would benefit from new tax revenues.
Vice President Kamala Harris and other Democrats across the country have evolved their thinking on energy. Harris has seen firsthand how American natural gas has secured our allies abroad against the fallout of Russia's invasion of Ukraine. She also understands the critical role natural gas plays in achieving the Administration’s goals of reshoring critical manufacturing jobs, alongside renewables, that benefit America’s heartland in states like Pennsylvania. Natural gas has been the primary source of America’s world-leading carbon reductions over the last two decades and will continue to be a low-carbon solution deployed abroad to replace coal and fight climate change.
The Debate on Natural Gas
The debate on natural gas revolves around balancing economic strength, technology, global competitiveness, staying ahead of China, and fighting climate change. Harris has the opportunity to establish her political position as a sensible Democrat who uniquely understands Pennsylvania.
Pennsylvania is already home to 71 data centers, with hubs in Pittsburgh and Philadelphia. The state has the potential to attract even more due to its proximity to the Marcellus Shale gas formations that have led Pennsylvania’s energy revolution in recent years. Democratic Governor Josh Shapiro recognizes this potential and has spoken at an AI forum at Carnegie Mellon.
The Role of Natural Gas in Powering AI
Data centers that power AI are energy-intensive and need to meet these power demands. A mothballed nuclear plant, Three Mile Island Unit 1 near Harrisburg, will be restarted as part of a 20-year power purchase agreement with Microsoft. However, this potential is limited. Natural gas is abundant, flexible, and affordable.
Some argue for building renewables only, but this is an oversimplified view. The United States is already behind the massive and costly 60% expansion of America’s power grid that Princeton University says is needed to transition our existing grid to a net-zero future. While solar and wind are vital to a clean energy future, their weather dependence cannot fulfill 24/7 power needs.
The Global Impact of Natural Gas
Under Harris's Administration, the U.S. became the global leader of liquefied natural gas (LNG) exports and was the largest LNG supplier to Europe in 2022 and 2023, stabilizing the economies of our Allies after Russia’s Ukraine invasion. Pennsylvania workers contributed to this victory.
Support for Natural Gas in Pennsylvania
Other statewide Democrats, such as Senators Bob Casey and John Fetterman, have supported the natural gas industry. Governor Shapiro has laid out plans for a diverse, resilient electricity grid. Pennsylvanians agree: 74% support building more natural gas infrastructure and 79% said natural gas drilling is important to the state’s economy.
Pennsylvania has the natural resources, infrastructure, and knowledge to power the AI boom and benefit many across the Commonwealth. Natural gas is the obvious choice to scale up quickly to meet new demands, protect our environment, and support Pennsylvania jobs. AI is the future, and the United States can only lead on it with practical energy policy that starts in key states like Pennsylvania.
Bottom Line
The rise of AI and the demand for electricity it creates presents a unique opportunity for states like Pennsylvania, rich in natural gas resources. Balancing economic growth, technology advancement, global competitiveness, and environmental concerns is a complex task. However, embracing natural gas as a solution could lead to job creation, investment, and a high-tech future. What are your thoughts on this matter? Feel free to share this article with your friends. Don't forget to sign up for the Daily Briefing, which is available every day at 6 pm.
