The global discourse surrounding artificial intelligence is often depicted as a technological competition.
According to The Daily Wire, while America is indeed engaged in an AI race, this competition could be over before it truly begins unless the nation secures a dependable energy source to fuel it.
From a technical perspective, the AI race is a test of intellect, involving algorithms, chips, and computing architecture. However, from an energy standpoint, it is a matter of wisdom: whether we possess the foresight to make prudent decisions now to prioritize and effectively utilize the abundant, affordable, and reliable energy resources at our disposal.
AI demands vast, continuous amounts of electricity, and the countries capable of delivering power at scale, at the lowest cost, and with the highest reliability will lead not only in AI but also in manufacturing, economic growth, and national security.
China is acutely aware of this reality, generating more than twice the electricity of the United States and expanding its power infrastructure at a pace unmatched by the U.S. in recent years. If America aims to lead in AI, it must prioritize natural gas, the only fuel source today that is readily deployable, scalable, reliable, and affordable.
For the first time in over fifty years, U.S. electricity demand is experiencing sustained growth. The Department of Energy projects that the U.S. will require 50 to 150 gigawatts of new electric capacity within the next decade, likening the challenge to the Manhattan Project of our time.
A single large data center can consume as much power as a heavy industrial facility, operating around the clock and necessitating uninterrupted baseload power. Wisdom is essential when determining the location of these facilities, as power generation can be established almost anywhere, but fuel cannot.
Our forebears understood the importance of proximity between power plants and fuel sources, constructing steel mills and petrochemical plants near power plants. When new power demand is situated far from the fuel source, costs increase, timelines extend, and risks multiply.
Long-haul transmission introduces expense, energy loss, permitting complexity, disruption, and public opposition, making electricity costly not only to generate but also to transport. The most efficient solution is also the simplest: build new power demand directly atop the fuel supply.
Two regions in the U.S. are uniquely positioned to meet this demand. Over 80% of U.S. natural gas production is concentrated in two strategic areas: the Gulf Coast and the Shale Crescent USA, encompassing Ohio, West Virginia, and Pennsylvania.
If these three states were a country, they would rank as the third-largest natural gas producer globally, accounting for roughly one-third of all U.S. natural gas. Natural gas in the Shale Crescent is among the most cost-effective in the industrialized world, approximately three to four times cheaper than in Europe and Asia, and among the lowest-priced in the United States.
For high-load users such as data centers, AI infrastructure, and advanced manufacturing, proximity to reliable baseload power is a strategic advantage. Across the nation, data centers are already grappling with securing power, with utilities issuing moratoria, interconnection queues extending into the next decade, and grid operators warning that demand is outstripping supply. America cannot surpass China in AI if China outpaces the United States in power generation.
The path forward is not enigmatic, but it does require political will and wisdom. Natural gas must be regarded as a strategic national asset, and the most cost-effective, low-risk approach is to situate new data centers and power-intensive infrastructure directly atop the fuel supply. By making this choice now, America can establish the energy foundation necessary for its AI future.
Nathan Lord, President of Shale Crescent USA, a non-profit organization dedicated to fostering business growth and creating high-wage jobs in Ohio, West Virginia, and Pennsylvania, emphasizes the importance of this strategic decision. A graduate of Marietta College with an MBA from Liberty University, Lord's views in this piece are his own and do not necessarily reflect those of The Daily Wire.
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