The rise of artificial intelligence (AI) is impacting various industries, including the energy sector. The increasing adoption of AI and cloud computing technologies is driving significant growth in data center demand. According to the International Energy Agency's 2024 report, global data center electricity consumption is projected to double by 2026. This surge in data center growth is increasing the need for reliable energy sources, with natural gas (NGX24) emerging as a key player.
At the intersection of AI-driven power demand and natural gas production are midstream energy companies – the often-overlooked workhorses of the oil and gas industry. These firms, specializing in the transportation, storage, and processing of natural gas and other energy products, typically boast more stable cash flows than their upstream or downstream counterparts, as they're less directly exposed to the volatile swings of commodity prices.
