US Will Fall Behind In the AI Race Without Natural Gas, Says Williams Companies CEO

An anonymous reader quotes a report from CNBC: The U.S. will fall behind in the artificial intelligence race if it does not embrace natural gas to help meet surging electricity demand from data centers, the CEO of one of the nation’s largest pipeline operators told CNBC. “The only way we’re going to be able to keep up with the kind of power demand and the electrification that’s already afoot is natural gas,” Williams Companies CEO Alan Armstrong said in an interview Thursday. “If we deny ourselves that we’re going to fall behind in the AI race.” Williams Companies handles about one-third of the natural gas in the U.S. through a pipeline network that spans more than 30,000 miles. Williams’ network includes the 10,000 mile Transcontinental Pipeline, or Transco, a crucial artery that serves virtually the entire eastern seaboard including Virginia, the world’s largest data center hub, and fast growing Southeast markets such as Georgia.

The tech sector’s expansion of data centers to support AI and the adoption of electric vehicles is projected to add 290 terawatt hours of electricity demand by the end of the decade in the U.S., according to a recent report by the energy consulting firm Rystad. This load growth is equivalent to the entire electricity demand of Turkey, the world’s 18th largest economy. Executives at some the nation’s largest utilities have warned that failure to meet this surging electricity demand will jeopardize not just the artificial intelligence revolution, but economic growth across the board in the U.S. The role natural gas in helping to meet that demand is controversial as the country is simultaneously trying to transition to a clean energy economy through the rapid expansion of renewables. “We are going to run right up against a brick wall here and pretty quickly in terms of not having enough power available to do what we want to do on the AI side,” Armstrong said. “I actually see this as a huge national security issue,” the CEO said. “We’re going to have to get out of our own way or we’re going to accidentally keep ourselves from being the power we can be in the AI space.”

“Those groups that have very much had their brand be all green have come to us and said, ‘We got to work with you guys. We’ve run out of alternatives — we can’t meet the needs of our customers without using natural gas,'” Armstrong said. “We’re completely out of capacity ourselves,” Armstrong added. “So we just have to kind of beg, borrow and steal from other people’s capacity to do our best to make gas available.”