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Investor warns AI growth may trigger natural gas shortage

A growing demand for artificial intelligence could lead to a severe shortage of natural gas, according to Matthew Smith of Chronometer Partners. Smith says that the rapid expansion of AI technology requires massive data centers, which consume huge amounts of electricity. Much of that electricity comes from natural gas-fired power plants. He warns that investors and markets are not prepared for the coming crunch. While many focus on the potential of AI, they overlook the energy needed to run it. Smith advises buying shares in natural gas companies before the shortage drives prices higher. He believes the gap between supply and demand will be unprecedented. As data centers multiply, the strain on energy grids will increase. Natural gas, a key source of reliable power, will be in high demand. Smith cautions that this shortage could catch many off guard. He recommends that investors act now to position themselves for the shift. The warning comes as AI continues to transform industries worldwide. Energy infrastructure may need to expand to keep pace. Smith's firm focuses on energy and technology investments. While the exact timing of the shortage is unclear, Smith stresses the importance of early preparation. The natural gas market, he says, is poised for a significant change.

Sources: MarketWatch
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