Why Natural Gas Could Power the AI Revolution—And Your Portfolio

The artificial intelligence boom has captivated investors, sending tech stock valuations to stratospheric levels. Yet the real opportunity may lie not in AI hardware companies themselves, but in the energy infrastructure required to power them. As data centers consume unprecedented amounts of electricity, natural gas—the backbone of modern power generation—stands poised for extraordinary demand growth. This shift presents a compelling case for energy investors to reconsider their portfolio allocation.

The Energy Crisis Behind AI’s Explosive Growth

Data centers running AI applications consume staggering quantities of electricity. According to S&P Global’s 451 Research division, U.S. data center power consumption is projected to nearly double, climbing from approximately 62 gigawatts in 2025 to over 134 gigawatts by 2030. This explosive growth trajectory is forcing power utilities and energy companies to build new generation capacity at an unprecedented pace.

To meet this surging electricity demand, the power sector is increasingly turning to natural gas—a flexible, reliable, and scalable fuel source. Unlike renewable energy alone, which cannot meet baseload power requirements, natural gas provides the consistent energy supply that AI data centers demand around the clock. This structural shift is creating a genuine supply challenge for the natural gas industry, with producers racing to expand output and infrastructure.

EQT’s Integrated Advantage in a Fragmented Market

While most natural gas producers operate as either upstream producers or midstream infrastructure companies, EQT has emerged as America’s sole large-scale, vertically integrated natural gas giant. Following its transformative 2024 acquisition of Equitrans Midstream, the company now controls the complete value chain—from production through transportation to delivery.

This integrated model delivers a powerful competitive advantage. EQT operates extensive production assets across the heart of the Appalachian Basin, controlling over 1 million undeveloped core net acres spanning Pennsylvania, Ohio, and West Virginia. Complementing these reserves, the company owns a sophisticated network of natural gas pipelines, processing plants, and storage facilities. The result: EQT produces natural gas at approximately $2 per MMBtu, positioning it among the nation’s lowest-cost operators.

This cost advantage matters enormously in a rising-demand environment. As power companies scramble to secure additional gas supplies, EQT is capturing market share through long-term integrated supply contracts. The company is currently supplying gas to major new power projects, including the 3.6-gigawatt Shippingport Power Station and the 4.4-gigawatt Homer City redevelopment facility. Additionally, EQT is expanding its Mountain Valley Pipeline through two projects—MVP Boost and MVP Southgate—to deliver incremental gas volumes to high-demand regions.

Cashing In: The Free Cash Flow Opportunity Ahead

The financial implications are substantial. EQT projects it can generate cumulative free cash flow ranging from $10 billion to over $25 billion through 2029, assuming natural gas prices between $2.75 and $5.00 per MMBtu. Over the past 12 months alone, at an average price of $3.25 per MMBtu, the company generated $2.3 billion in free cash flow.

That capital provides management with multiple strategic options: debt reduction, dividend payments, share repurchases, or strategic acquisitions to further expand operations. In an energy-constrained world racing to support AI infrastructure, this financial firepower translates into tangible competitive advantage.

A Better Alternative to Overvalued AI Stocks

Investors chasing artificial intelligence have bid many tech companies to valuations that price in perfection. The risk-reward dynamics increasingly favor downside scenarios. Yet investors who understand that AI requires massive amounts of energy can participate in the AI revolution through a more reasonably valued alternative: energy infrastructure companies positioned to supply that power.

EQT’s stock has remained largely unchanged over the past year, even as the broader market celebrated AI-related equities. Yet the company appears increasingly positioned to capture significant upside as gas demand accelerates over the next several years. For investors seeking exposure to the AI boom without concentrating excessive portfolio weight in expensive technology stocks, natural gas represents a compelling and often overlooked pathway.