-
AI data centers require large amounts of electricity, which should spur a surge in natural gas demand.
-
EQT’s large-scale, integrated operations enable it to produce low-cost natural gas.
-
The company is becoming a leading provider of integrated natural gas solutions to power producers.
-
10 stocks we like better than EQT ›
Many AI stocks have surged over the past year as demand for AI-related hardware such as chips surged. As a result, many of the top tech companies are expensive. This tilts the risk-reward towards more downside risk upside than potential.
However, AI stocks aren’t the only companies that will benefit from the boom. These companies need massive amounts of energy to power AI chips and data center cooling system. This stimulates strong demand natural gaswhich should benefit leading natural gas producers EQT (NYSE: EQT). That’s why as AI natural gas demand accelerates, it’s likely to surge.
EQT has a differentiation strategy. It is the only large vertically integrated natural gas producer. it has extensive upstream Natural gas production assets in the core Appalachian Basin, supplemented by strategic midstream infrastructure. The company completed its transformative acquisition of Equitrans Midstream in 2024, becoming the only vertically integrated natural gas producer in the country.
The company controls more than 1 million acres of core undeveloped land in Pennsylvania, Ohio and West Virginia. In addition, it has natural gas pipelinenatural gas processing plants, storage capacity and other related infrastructure. The company’s massive resource position in the core of the basin, along with extensive integrated infrastructure, makes it one of the lowest-cost natural gas producers in the country, at $2 per MMBtu.
AI data centers consume a lot of power. It is estimated S&P Global451 ResearchIt is predicted that U.S. data center power demand will increase from nearly 62 gigawatts (GW) last year to more than 134 GW by 2030. This has sent power companies racing to build new gas-fired generation to meet growing demand.
EQT is becoming a leader in the supply of additional natural gas to the power industry. The company is entering into integrated natural gas supply and midstream contracts to support large natural gas power projects, including the 3.6 GW Shippingport Generating Station and the 4.4 GW Homer City redevelopment project. Additionally, the company is working on two projects to expand its massive Mountain Valley pipelines (MVP Boost and MVP Southgate) to supply incremental natural gas to high-demand areas. These projects will allow EQT to increase its natural gas production while also benefiting from additional midstream revenue.
