As the Magnificent Seven races to dominate artificial intelligence (AI), their power demands are pushing natural gas into the spotlight.

According to JPMorgan analyst Arun Jayaram, power demands could add 1.9 Bcf/d to U.S. natural gas consumption by 2028.

AI, Electrification Light Up The Grid

From powering data centers to meeting the electrification needs of a tech-driven economy, natural gas is becoming indispensable.

Meta Platforms Inc ( META )'s $10 billion data center campus in Louisiana, for example, is tied to a proposed 1.5 GW natural gas plant. Renewables are part of the mix, too. But the availability and affordability of natural gas are making it a critical piece of the energy puzzle.

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The LNG Boom: Full Speed Ahead

Liquefied natural gas (LNG) is also seeing explosive growth. U.S. LNG export capacity, now at ~14 Bcf/d, is set to hit ~22 Bcf/d by 2026 and could soar to ~26 Bcf/d by 2030.

This bodes as good news for investors in the United States Natural Gas Fund LP ( UNG ) and the ProShares Ultra Bloomberg Natural Gas ( BOIL ) .

Key projects like Port Arthur and Rio Grande are driving this expansion. There’s even more upside possible if a Trump administration lifts permitting barriers. The global appetite for LNG, fueled by geopolitical shifts and the energy transition, ensures a robust runway for U.S. exports.

Mag-7's Capex Frenzy Powers The Surge

The Mag 7 are pumping unprecedented capital into AI, with more than $500 billion in capex and R&D projected over the next year. This spendathon is reshaping industries, and natural gas is riding the wave.

The U.S. saw an 88% year-over-year surge in gas turbine orders, driven by soaring electricity demand. Jayaram notes this AI-fueled capex boom rivals the U.S. defense budget in scale, signaling massive systemic change but also raising concerns about overinvestment.

As AI transforms the economy, natural gas is cementing its role as a cornerstone of the energy landscape. Whether it's powering data centers, fueling LNG exports, or keeping the lights on in an electrified world, natural gas is poised to ride this tech-driven tidal wave.

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