As data centers become critical infrastructure for global digital transformation, the demand for reliable and uninterrupted power is skyrocketing.
These centers power the cloud services, AI development, and digital operations of major tech giants like Microsoft, Google, and Amazon.
Yet, as electricity demand rises, data centers are increasingly turning to natural gas-fired onsite generation as a solution to power delays and grid constraints.
The intersection of data centers and natural gas pipelines is gaining significant attention, particularly in the U.S., where the onshoring of manufacturing, population growth, and shifts in energy resources are increasing the need for stable power sources.
Pipeline companies like Kinder Morgan, Williams Co., and Energy Transfer have reported a dramatic rise in requests from data centers seeking direct pipeline connections for onsite natural gas generation.
This trend raises important questions for industries, including those Astute works with, such as the energy, engineering, and power generation sectors.
Understanding the implications of natural gas as a key enabler of the next phase of data center growth is vital for professionals navigating the evolving energy landscape.
Grid Delays and Power Constraints
Traditionally, data centers have relied on grid power to support their operations.
However, with increasing grid congestion and long wait times for new connections, reported as long as five to seven years, operators are exploring alternative solutions.
According to reports, utilities are facing challenges in accommodating the rising demand for electricity, leading to delays that could impact business continuity for data-heavy industries.
As a result, companies are seeking faster and more reliable options for powering their data centers.
Co-locating data centers with natural gas-fired power generation facilities offers a compelling solution.
By bypassing grid delays, this approach allows data centers to build onsite power generation plants, ensuring their facilities can come online without having to wait for grid hookups.
Moreover, it provides an additional layer of reliability, critical in today’s data-driven world where downtime can have massive financial and operational consequences.
The Role of Natural Gas in Data Centers
Natural gas has emerged as a preferred choice for onsite power generation due to its relatively low cost, availability, and lower emissions compared to coal.
For data center operators, especially those involved in long-term infrastructure planning, natural gas provides a stable and scalable energy solution.
Kinder Morgan, one of the U.S.’s largest energy infrastructure companies, reports that it is currently engaged in discussions related to over 5 billion cubic feet per day (Bcf/d) of natural gas demand, 1.6 Bcf/d of which is linked directly to data centers.
Williams Co. has similarly observed an increase in demand for incremental natural gas to power data centers, noting that this interest is not only concentrated in traditional data center hubs like Virginia and Ohio but is spreading across the country.
These developments reflect broader shifts in the U.S. energy landscape.
Data centers are not the only industry driving demand for natural gas; electrification trends, the onshoring of manufacturing, and the transition from coal to gas in states such as Kentucky and Tennessee are also major contributors.
Yet, as data centers move towards more sustainable operations, the natural gas sector is uniquely positioned to support this transition, especially in regions where renewable energy infrastructure is not yet fully developed.
The Impact of AI and Digital Growth on Power Demand
One of the key factors fueling the rise in data center demand is the expansion of artificial intelligence (AI).
AI applications, particularly those involving machine learning and large-scale data processing, require enormous amounts of computational power.
This translates into higher electricity consumption, pushing data centers to explore energy solutions that can meet their growing needs.
A recent study by the Electric Power Research Institute (EPRI) estimates that data centers could consume up to 9% of U.S. electricity generation by 2030, more than double their current share.
The exact impact of AI on energy demand is difficult to quantify, but some forecasts suggest that combined-cycle gas-fired generation could add between 1.7 to 12 Bcf/d of additional U.S. natural gas demand between 2023 and 2030.
For energy professionals and engineers involved in power generation, this presents both a challenge and an opportunity.
The integration of AI and the growth of digital infrastructure will drive demand for engineers with expertise in both traditional and renewable energy sources.
As data centers seek to optimize their power usage, they will also need skilled engineers to design, maintain, and operate efficient, scalable systems.
Implications for recruitment in the Power Generation sector
As the demand for natural gas to power data centers rises, so too will the need for skilled professionals in energy and engineering sectors.
Astute, which recruits for a variety of technical and energy roles, is well-positioned to support companies navigating this shift.
Professionals with expertise in natural gas infrastructure, power generation, and data center operations will be in high demand.
Engineers capable of designing and operating combined-cycle natural gas plants, as well as those familiar with the intricacies of pipeline infrastructure, will be crucial to ensuring that data centers remain powered and operational.
Furthermore, as companies like Kinder Morgan and Williams Co. continue to innovate in how they supply energy to data centers, opportunities for career growth within the natural gas sector are likely to expand.
Engineers, project managers, and technical specialists with experience in co-locating power generation facilities with data centers will find themselves at the forefront of this growing trend.
Navigating the future of data center power
As data centers expand and the demand for AI, cloud computing, and digital services accelerates, natural gas-fired power generation is emerging as a critical solution to power challenges.
For companies involved in energy and power generation, this trend represents a significant growth opportunity, but it also underscores the need for skilled professionals capable of navigating this new landscape.
Astute is committed to helping organizations find the right talent to meet these challenges.
Whether it’s engineers with experience in power generation or project managers adept at navigating complex energy projects, the recruitment of skilled professionals will be key to ensuring the success of both data centers and the broader energy sector.
As the energy landscape evolves, Astute remains at the forefront of recruitment, helping companies secure the talent they need to power the future.
Reach out to our team today to learn more about how we can support your recruitment needs in the energy and engineering sectors.
