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AI Data Center Boom Lifts Gas Demand: Will WMB, AR, KMI Gain?

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Key Takeaways

  • Data centers' soaring power needs are driving higher demand for natural gas.
  • Antero Resources' strong Appalachian Basin presence supports production growth.
  • Williams and Kinder Morgan transport over 70% of U.S. natural gas via pipelines.

The world is gradually witnessing a widespread adoption of artificial intelligence (AI) across all businesses, which is driving a significant increase in demand for data centers. These data centers house sophisticated servers and supporting infrastructures required by AI to process data and train models. To support this immense computing power and intense workload, data centers are in increasing need of more electricity, which, in turn, is raising the demand for natural gas.

This is because the electricity generated from natural-gas-fired plants is cleaner. With the rising demand for natural gas, the outlook becomes bright for companies involved in exploring and producing and transporting the commodity from the shale plays to the end market. Three energy players that are well-poised to grow areAntero Resources (AR - Free Report) , Williams (WMB - Free Report) and Kinder Morgan Inc (KMI - Free Report) .

3 Energy Stocks: AR, WMB, KMI

Antero Resourcesis a leading explorer and producer of natural gas in the United States.In the Appalachian Basin, among the prolific plays, the company has a strong footprint, brightening the production outlook. Thus, being a prominent producer in the United States, AR is well-positioned to capitalize on the data center-led mounting energy demand.

Williams is a midstream energy giant with a huge pipeline network, involved in transporting roughly 33% of the natural gas produced in the domestic market. Thus, the outlook for WMB also remains bright.

Like WMB, Kinder Morgan is also a midstream energy major. Employing its huge pipeline network, KMI is responsible for carrying roughly 40% of the natural gas being produced in the domestic market.


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