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Artificial Intelligence increases the price of gas, is playing a critical role in the energy transition

2024-06-24 13:35:44Kosova&Bota SHKRUAR NGA REDAKSIA VOX

Artificial Intelligence increases the price of gas, is playing a critical role

Currently, on the path to reducing the global carbon footprint, natural gas is expected to play the role of a transitional fuel. At the same time, artificial intelligence, a field that is currently booming, is expected to cause a significant increase in electricity consumption.

According to an analysis by S&P Global Commodity Insights, global electricity demand will grow by a third over the next 10 years, including demand for data centers, and natural gas will play an important role as a major source of electricity. Between 2024 and 2035, natural gas is expected to add 47 gigawatts per year, according to the same report.

It is noted that there are some indications that the demand for natural gas will increase especially in the emerging markets of Asia, due to population growth, industrial development and the gradual transition to clean energies.

Big tech companies like Amazon, Google Alphabet, Microsoft and Meta are well advanced in their plans for data center infrastructure, which requires massive amounts of energy. In fact, according to a Goldman Sachs report, natural gas could provide 60% of the electricity needed for infrastructure.

Of course, other factors have contributed to the recent rise in prices, such as production disruptions in Norway and limited production in the US, which is a major supplier to Europe following Russia's invasion of Ukraine.

Now, facing a summer of very hot temperatures in the Northern Hemisphere, prices may rise further due to increased demand for cooling homes and advance work in industrial plants.


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