With its cyclical nature, the energy sector experiences swings that mirror economic trends, with supply and demand constantly in flux. Right now, the natural gas (NGX24) space is making a comeback, fueled by rising demand and the urgent need for infrastructure. This landscape is shifting due to the rise of artificial intelligence (AI), which is driving explosive growth in data center energy needs. According to the International Energy Agency (IEA), global data center electricity consumption is set to double by 2026, placing natural gas in the spotlight.
At the core of this change are midstream energy companies - often the underappreciated contributors to the oil and gas industry. These firms handle the transportation and storage of natural gas, which allows them to enjoy more stable cash flows and consistent dividend payouts as the “landlords” of the industry.
