In a Friday interview with CNBC’s Jim Cramer, EQT CEO Toby Rice claimed that natural gas will be a major source of power for the burgeoning artificial intelligence boom.
“We firmly believe that natural gas is going to take the lion’s share of power demand to meet this growing AI demand need,” Rice said. “And people need to understand, this is not just a luxury item, this is not just going to make our apps better, this is absolutely critical that America wins the AI race.”
EQT is one of America’s leading energy companies that produces natural gas. According to Rice, there’s been renewed intensity for the appetite to meet the demand created by the technology required for AI. A whole host of tech companies have been building out AI infrastructure, including a large number of data centers that guzzle energy. He said EQT plans to make sure that tech companies have enough power to meet their needs.
Environmentalists have pushed to limit natural gas production because it emits greenhouse gases, which greatly contribute to climate change, and instead advocate for clean energy. Rice admitted that natural gas has a substantial carbon footprint, but suggested it has the potential to replace coal. Coal is often considered to be the dirtier fossil fuel — although recent research has subject that claim to debate.
Rice lauded the Trump administration’s efforts to boost natural gas production, which had been halted by former President Joe Biden. Rice said it’s necessary to build infrastructure to “unleash American energy” and take pressure off the electric grid.
“Our grid is very fragile, as people have talked about, and some people are saying that this AI demand surge is going to be the straw that breaks the camel’s back,” he said. “If you ask me, this is going to be the log that breaks the camel’s back.”
