Behind the Meter Generation: How Natural Gas Fuels AI Growth Until Nuclear Scales Up
- Timothy Beggans
- Feb 17
- 1 min read
The explosion of AI and cloud computing has created an unprecedented demand for reliable, low-cost power. Data centers—the backbone of AI growth—require enormous amounts of electricity, often in urban and suburban areas where grid limitations pose challenges. This is where Behind the Meter Generation (BTMG) comes in: on-site power generation that provides data centers with dedicated, scalable energy.
For the next several decades, natural gas will be the primary fuel driving BTMG for AI infrastructure, given its strategic advantages over other energy sources. The U.S. has abundant natural gas reserves, enabling stable pricing and long-term energy security. Unlike Small Modular Reactors (SMRs), which remain years away from widespread deployment, natural gas plants can be permitted and built much faster.
Recent deals, like Energy Transfer’s agreement with Cloudburst Energy (source), highlight how private energy providers are securing natural gas for hyperscale data centers. This allows AI growth to continue without waiting on large-scale grid expansions or nuclear advancements. While nuclear will likely take over in the 2040s, natural gas ensures that AI infrastructure doesn’t stall in the meantime.
As the U.S. leverages its energy advantage, policy leaders, AI firms, and energy providers must collaborate to streamline approvals for gas-fired BTMG facilities, ensuring America remains the leader in AI-powered innovation.
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