Investment Supercycle
Data Center Demand Begins to Move the Gas Market
𝗚𝗘 𝗩𝗲𝗿𝗻𝗼𝘃𝗮’𝘀 𝗤𝟭’𝟮𝟱 𝗲𝗮𝗿𝗻𝗶𝗻𝗴𝘀 𝗰𝗮𝗹𝗹 𝘀𝗵𝗲𝗱 𝗻𝗲𝘄 𝗹𝗶𝗴𝗵𝘁 𝗼𝗻 𝘁𝗵𝗲 𝗺𝗮𝗿𝗸𝗲𝘁 𝗳𝗼𝗿 𝗴𝗮𝘀-𝗳𝗶𝗿𝗲𝗱 𝗴𝗲𝗻𝗲𝗿𝗮𝘁𝗶𝗼𝗻 𝗮𝗻𝗱 𝘁𝗵𝗲 𝗶𝗻𝗳𝗹𝘂𝗲𝗻𝗰𝗲 𝗼𝗳 𝗱𝗮𝘁𝗮 𝗰𝗲𝗻𝘁𝗲𝗿𝘀 𝗼𝗻 𝘁𝗵𝗲 𝗴𝗲𝗻𝗲𝗿𝗮𝘁𝗶𝗼𝗻 𝗺𝗶𝘅.
Here are few comments that caught my eye:
📍𝗚𝗘𝗩 𝗱𝗲𝘀𝗰𝗿𝗶𝗯𝗲𝗱 𝘁𝗵𝗲 𝗰𝘂𝗿𝗿𝗲𝗻𝘁 𝗲𝗻𝘃𝗶𝗿𝗼𝗻𝗺𝗲𝗻𝘁 𝗮𝘀 𝗮𝗻 “𝙞𝙣𝙫𝙚𝙨𝙩𝙢𝙚𝙣𝙩 𝙨𝙪𝙥𝙚𝙧 𝙘𝙮𝙘𝙡𝙚”: While load growth in North American “𝘪𝘴 𝘵𝘩𝘦 𝘮𝘰𝘴𝘵 𝘴𝘪𝘨𝘯𝘪𝘧𝘪𝘤𝘢𝘯𝘵 𝘴𝘪𝘯𝘤𝘦 𝘵𝘩𝘦 𝘱𝘰𝘴𝘵-𝘞𝘰𝘳𝘭𝘥 𝘞𝘢𝘳 𝘐𝘐 𝘪𝘯𝘥𝘶𝘴𝘵𝘳𝘪𝘢𝘭 𝘣𝘶𝘪𝘭𝘥 𝘰𝘶𝘵”, the difference in this cycle is that “𝘵𝘩𝘦 𝘨𝘳𝘰𝘸𝘵𝘩 𝘪𝘴 𝘨𝘭𝘰𝘣𝘢𝘭”.
📍𝗧𝗵𝗲 𝗶𝗺𝗽𝗮𝗰𝘁 𝗼𝗳 𝗱𝗮𝘁𝗮 𝗰𝗲𝗻𝘁𝗲𝗿𝘀 𝗶𝘀 𝗼𝗻𝗹𝘆 𝗷𝘂𝘀𝘁 𝘀𝘁𝗮𝗿𝘁𝗶𝗻𝗴 𝘁𝗼 𝘀𝗵𝗼𝘄 𝘂𝗽 𝗶𝗻 𝘁𝗵𝗲𝗶𝗿 𝗼𝗿𝗱𝗲𝗿 𝗯𝗼𝗼𝗸: “𝘖𝘧 𝘵𝘩𝘦 29 𝘨𝘪𝘨𝘢𝘸𝘢𝘵𝘵𝘴 𝘵𝘩𝘢𝘵 𝘢𝘳𝘦 𝘢𝘭𝘳𝘦𝘢𝘥𝘺 𝘰𝘯 𝘣𝘢𝘤𝘬𝘭𝘰𝘨, 𝘸𝘩𝘦𝘯 𝘪𝘵 𝘤𝘰𝘮𝘦𝘴 𝘵𝘰 𝘥𝘢𝘵𝘢 𝘤𝘦𝘯𝘵𝘦𝘳𝘴, 𝘪𝘵'𝘴 𝘧𝘢𝘪𝘳𝘭𝘺 𝘯𝘦𝘨𝘭𝘪𝘨𝘪𝘣𝘭𝘦”. An additional 21 gigawatts are on slot reservation agreements, with “𝘢𝘣𝘰𝘶𝘵 𝘢 𝘵𝘩𝘪𝘳𝘥 𝘰𝘧 𝘪𝘵... 𝘢𝘭𝘪𝘨𝘯𝘦𝘥 𝘸𝘪𝘵𝘩 𝘵𝘩𝘦 𝘥𝘢𝘵𝘢 𝘤𝘦𝘯𝘵𝘦𝘳 𝘣𝘶𝘪𝘭𝘥 𝘰𝘶𝘵.”
📍𝗗𝗮𝘁𝗮 𝗰𝗲𝗻𝘁𝗲𝗿 𝗰𝗮𝗻𝗰𝗲𝗹𝗹𝗮𝘁𝗶𝗼𝗻 𝗿𝗶𝘀𝗸 𝗶𝘀 𝗱𝗲𝗲𝗺𝗲𝗱 𝘀𝗺𝗮𝗹𝗹 𝗮𝗻𝗱 𝗳𝗶𝗿𝗺 𝗼𝗿𝗱𝗲𝗿 𝗱𝗲𝗽𝗲𝗻𝗱𝗲𝗻𝘁 𝗼𝗻 𝗰𝘂𝘀𝘁𝗼𝗺𝗲𝗿’𝘀 𝗳𝗶𝗿𝗺𝗶𝗻𝗴 𝘁𝗵𝗲𝗶𝗿 𝗳𝗶𝗻𝗮𝗹 𝘀𝗶𝘁𝗲 𝘀𝗲𝗹𝗲𝗰𝘁𝗶𝗼𝗻 𝗮𝗻𝗱 𝗘𝗣𝗖 𝗽𝗮𝗿𝘁𝗻𝗲𝗿: “... 𝘵𝘩𝘦𝘺 𝘮𝘢𝘺 𝘩𝘢𝘷𝘦 𝘱𝘶𝘵 𝘪𝘯 𝘢𝘪𝘳 𝘱𝘦𝘳𝘮𝘪𝘵 𝘳𝘦𝘲𝘶𝘦𝘴𝘵𝘴 𝘪𝘯 𝘮𝘶𝘭𝘵𝘪𝘱𝘭𝘦 𝘴𝘵𝘢𝘵𝘦𝘴 𝘧𝘰𝘳 𝘱𝘰𝘵𝘦𝘯𝘵𝘪𝘢𝘭 𝘣𝘶𝘪𝘭𝘥 𝘰𝘶𝘵𝘴. 𝘛𝘩𝘦𝘺'𝘳𝘦 𝘯𝘦𝘨𝘰𝘵𝘪𝘢𝘵𝘪𝘯𝘨 𝘸𝘪𝘵𝘩 𝘵𝘩𝘦 𝘌𝘗𝘊𝘴. 𝘈𝘯𝘥 𝘢𝘴 𝘵𝘩𝘰𝘴𝘦 𝘵𝘩𝘪𝘯𝘨𝘴 𝘧𝘪𝘳𝘮 𝘶𝘱, 𝘸𝘦'𝘭𝘭 𝘧𝘪𝘳𝘮 𝘵𝘩𝘦𝘮 𝘶𝘱 𝘪𝘯 𝘰𝘳𝘥𝘦𝘳𝘴...”
📍𝗜𝗻𝗳𝗹𝗮𝘁𝗶𝗼𝗻 𝗶𝘀 𝗰𝗼𝗺𝗶𝗻𝗴 𝗳𝗿𝗼𝗺 𝘁𝗮𝗿𝗶𝗳𝗳𝘀 𝗮𝗻𝗱 𝗱𝗲𝗺𝗮𝗻𝗱 𝘀𝘁𝗿𝗲𝗻𝗴𝘁𝗵: “𝘐𝘯 𝘨𝘢𝘴 𝘸𝘦 𝘤𝘰𝘯𝘵𝘪𝘯𝘶𝘦 𝘵𝘰 𝘣𝘦 𝘪𝘯 𝘢 𝘱𝘳𝘪𝘤𝘦 𝘶𝘱 𝘦𝘯𝘷𝘪𝘳𝘰𝘯𝘮𝘦𝘯𝘵.” Specific to tariffs, “𝘴𝘰𝘮𝘦 𝘱𝘭𝘢𝘤𝘦𝘴 ... 𝘸𝘦 𝘤𝘢𝘯 𝘱𝘢𝘴𝘴 𝘪𝘵 𝘵𝘩𝘳𝘰𝘶𝘨𝘩 𝘶𝘯𝘥𝘦𝘳 𝘤𝘰𝘯𝘵𝘳𝘢𝘤𝘵𝘴 𝘵𝘩𝘢𝘵 𝘩𝘢𝘷𝘦 𝘪𝘯𝘧𝘭𝘢𝘵𝘪𝘰𝘯𝘢𝘳𝘺 𝘤𝘭𝘢𝘶𝘴𝘦𝘴” and in others “𝘴𝘰𝘮𝘦 𝘰𝘧 𝘰𝘶𝘳 𝘤𝘰𝘯𝘵𝘳𝘢𝘤𝘵𝘴 𝘰𝘯 𝘵𝘩𝘦 𝘦𝘲𝘶𝘪𝘱𝘮𝘦𝘯𝘵 𝘴𝘪𝘥𝘦 𝘸𝘩𝘦𝘳𝘦 𝘸𝘦 𝘩𝘢𝘷𝘦 𝘵𝘩𝘦 𝘰𝘱𝘱𝘰𝘳𝘵𝘶𝘯𝘪𝘵𝘺 𝘵𝘰 𝘵𝘢𝘭𝘬 𝘵𝘰 𝘰𝘶𝘳 𝘤𝘶𝘴𝘵𝘰𝘮𝘦𝘳𝘴 𝘢𝘣𝘰𝘶𝘵 𝘩𝘰𝘸 𝘵𝘩𝘪𝘴 𝘮𝘪𝘨𝘩𝘵 𝘤𝘰𝘮𝘦 𝘵𝘩𝘳𝘰𝘶𝘨𝘩 𝘸𝘪𝘵𝘩 𝘢 𝘤𝘩𝘢𝘯𝘨𝘦 𝘪𝘯 𝘭𝘢𝘸 𝘬𝘪𝘯𝘥 𝘰𝘧 𝘤𝘭𝘢𝘶𝘴𝘦.”
What stands out to you?