For years, tech giants such as Amazon, Google, Meta, and Microsoft have raced to secure wind and solar capacity for their expanding data center empires. But now, a fresh forecast suggests their latest bet on natural gas may leave them exposed to a painful price shock.
According to Noreva, an energy research firm, natural gas prices in some parts of the United States could triple in the coming years. The projected surge stems from a collision of factors: soaring electricity demand from hyperscale data centers, a slowdown in domestic gas production growth, and a steady rise in exports of liquefied natural gas (LNG).
The hyperscalers, which are powering their aggressive artificial intelligence ambitions with data centers that require enormous electricity, have increasingly signed contracts for gas-fired generation. This marks a notable shift for companies that spent years snapping up wind and solar projects, and reflects the limitations of renewables when it comes to round-the-clock reliability.
Noreva’s report, however, cautions that these corporate buyers may not be fully braced for future volatility in the gas market. The warning comes as the firms face mounting pressure from investors and regulators to cut their carbon footprints, even as their energy appetite grows.
If the forecast proves accurate, hyperscalers could face billions of dollars in additional energy costs, potentially forcing Amazon, Google, Meta, and Microsoft to rethink their reliance on natural gas. For now, the industry’s bet on fossil fuels may be a gamble worth watching closely.
