Natural gas is experiencing a surge in popularity among investors, thanks to the growing demand for electricity to power artificial intelligence (AI) and data centers. The Appalachian region, particularly the Marcellus and Utica shale plays in Pennsylvania, West Virginia, and Ohio, is at the forefront of this trend. The region's proximity to Virginia's growing Data Center Alley and upcoming AI infrastructure makes it an ideal location for natural gas production.
The increasing demand for electricity to power AI and data centers is driving growth in natural gas consumption. According to the International Energy Agency, natural gas demand is expected to soar 25% by 2030, led by LNG growth and data center power thirst. Record-high LNG exports are expected to roughly double by 2030, further boosting demand for natural gas.
Top gas producers in the Appalachian region, such as EQT, Range Resources, Antero Resources, and Expand Energy, are well-positioned to benefit from the growing demand for natural gas. EQT has inked deals to provide gas to Homer City and Pennsylvania's planned Shippingport Power Station, and is providing pipeline services to fuel planned gas plants in West Virginia. Range Resources has a new partnership with Imperial Land industrial park developer in Pennsylvania to fuel new gas-fired power generation for data centers.
Antero chairman and CEO Paul Rady expects natural gas demand to increase by 25% by 2030, driven by LNG growth and data center power demand. Expand Energy, formed through the combination of Chesapeake Energy and Southwestern Energy, has huge presences in Appalachia and northern Louisiana's gassy Haynesville Shale near LNG hubs.
The growth in natural gas demand is not only driven by AI and data centers but also by the ongoing retirement of aging coal plants, being replaced by relatively cleaner-burning gas. As the demand for natural gas continues to grow, the Appalachian region is likely to play a significant role in meeting this demand.
