With AI Energy Boom, Go Long Kinder Morgan
Some of the best energy stocks to buy now are associated with artificial intelligence.
For one, there are projections that data center power demand will double by 2030, thanks to artificial intelligence.
Two, Goldman Sachs is bullish, estimating about 47 gigawatts (GW) of additional power generation capacity will be needed to accommodate growth. Three, electric utility companies, like Sempra (SRE) expect to see a substantial amount of new power demand from data centers.
“In terms of macro numbers, by 2030 AI could account for 3% to 4% of global power demand. Google said right now AI is representing 10% to 15% of their power use or 2.3 TWh annually,” says S&P Global.
In addition, electric companies, like PG&E Corporation (PCG) expect a tidal wave of new power demand from data centers powering technology like generative artificial intelligence.
Even companies like Kinder Morgan (KMI) should benefit.
For one, skyrocketing electricity loads will need another energy source if renewables cannot generate enough power, says CNBC. That other energy source is natural gas. And it could provide about 60% of the power demand growth from AI and data centers, they added.
“As much as 8.5 billion cubic feet per day of natural gas could be required additionally to match the rise in demand,” says Tudor Pickering, as noted by Reuters.
Even better, while we wait for further upside in the Kinder Morgan stock, we can always sit back and collect its current yield of 5.4%.
