Hyperscalers’ Natural Gas Bet Could Get Expensive

Amazon, Google, Meta, and Microsoft are betting that natural gas will help power the data centers behind their AI ambitions, according to TechCrunch. A new research report from Noreva warns that natural gas prices could triple in some parts of the U.S. as hyperscaler demand meets declining supply growth and rising liquefied natural gas exports. The immediate takeaway: power strategy is becoming a direct business risk for AI infrastructure.

TechCrunch reports that Meta said in March it would build a 7.5-gigawatt natural gas power plant in Louisiana for its Hyperion data center. Microsoft and Google each said they would build gigawatt-scale gas power plants in Texas, while Amazon plans a 7.6-gigawatt gas power plant in Texas. For companies historically cautious about large capital expenditures, the AI data center boom is pushing them deeper into physical infrastructure and unfamiliar energy markets.

Noreva expects natural gas prices to rise above $10 per million BTUs in certain hubs, compared with current prices ranging from about $2 to $4.50 per million BTUs and Henry Hub at just under $3. The report points to tighter supply growth, more expensive new wells, and stronger links between domestic gas markets and global export markets. West Texas, where cheap gas has attracted hyperscalers, is also becoming more connected through pipelines, which could reduce regional discounts and expose buyers to broader market swings.

Fuel represents about half the cost of electricity from a large power plant, so a doubling or tripling of natural gas prices could make “bring your own power” AI data centers more expensive to operate. TechCrunch notes that this could raise token costs or push hyperscalers toward the grid, potentially affecting electricity prices. Under Noreva’s scenario, data center backlash could expand from electricity bills to natural gas bills, especially as 80% of consumers are already worried about data centers’ impact on utility costs.