Prime Highlights:
- The growth of data centers is putting pressure on U.S. natural gas storage, prompting new projects to ensure a reliable power supply.
- Salt caverns and other storage solutions are being developed to handle rising gas demand and support growing exports along the Gulf Coast.
Key Facts:
- U.S. natural gas production is expected to increase 15-25% between 2024 and 2030 due to exports, electrification, and industrial demand.
- Without adequate storage, pipeline disruptions from weather or infrastructure issues could leave critical facilities without power.
Background:
The growth of data centers in the U.S. is putting pressure on natural gas storage. Experts warn that limited underground reserves could lead to power problems.
Salt caverns, manmade storage spaces deep underground, are important for storing the large amounts of gas needed to power data centers and support growing gas exports along the Gulf Coast.
U.S. natural gas production is expected to increase 15-25% between 2024 and 2030 because of exports, electrification, and domestic industry demand. However, nearly a decade has passed with little new storage development, creating potential gaps in supply reliability. “Everybody in the data center world is moving fast, but they haven’t fully considered what could go wrong on the gas side,” said Edmund Knolle, president of Gulf Coast Midstream Partners, which plans a major salt cavern project near Houston by 2030.
Existing infrastructure expansions are underway. Enbridge is adding capacity at its Moss Bluff and Egan facilities in Texas and Louisiana, totaling 23 billion cubic feet of gas storage, while Trinity Gas Storage recently completed a 24-billion-cubic-foot facility in East Texas, with an expansion of 13 billion cubic feet underway.
Analysts say roughly twice the planned storage capacity is needed to keep pace with demand. The current wave of storage development is being described as “gas storage super-cycle 2.0,” reflecting the urgent need to catch up with the explosive growth in gas-dependent infrastructure.
While challenges remain, industry leaders remain confident that ongoing investments will meet demand. Caitlin Tessin, VP of Enbridge’s gas transmission, noted that pipelines and storage will remain “the backbone” of digital infrastructure, ensuring stable, around-the-clock energy for AI data centers while supporting the nation’s broader energy needs.
