by using a boiler, combustion turbine, or both. “When using a boiler, water is boiled creating steam that spins a turbine and generates electricity. When using a combustion turbine, pressurized gas turns the blades of a turbine connected to a generator. Magnets spin inside the generator creating an electric current. These methods can be used independently or together. In a combined cycle system, the energy created by one turbine generates more energy in another turbine. After one engine completes a conversion cycle, the heat exhaust is transferred through a heat exchanger. A second engine extracts energy from the heat to begin its own conversion cycle.” [13]
In Louisiana, Meta Platforms is constructing a 2GW+ AI data center. [22] “The $10 billion project will be built on 2,250 acres, housing 4 million sq ft with nine buildings slated to be almost the size of Manhattan. Entergy will spend $3.2 billion to build a 1.5GW gas plant on Franklin Farms as part of a co-location deal . . . or acquire another 1.5GW of solar power elsewhere to offset the carbon emissions.” [23] Finally, in Oklahoma, Core Scientific and AI hyperscaler CoreWeave are building a 100MW facility and Google has invested over $4.8 billion in its Mayes County, Oklahoma, data center campus, expanding it three times since 2007. [24] Consequently, the high concentration of pipelines in these regions will give natural gas a competitive advantage in becoming the main source of power for these projects.
After the electricity is created, it is sent through power lines to be used in our homes or for commercial, industrial, or transportation use. [14]
Natural Gas Pipelines and AI Data Centers
There are three types of natural gas pipelines: gathering pipelines, transmission
Governmental Incentives for Natural Gas
pipelines, and distribution pipelines. [15] Gathering pipelines transport the natural gas collected from the wellheads to a central collection point like a storage facility, a processing plant, or a transmission pipeline. [16] Transmission pipelines move high volumes of natural gas from the production and processing plants, storage facilities, and distribution centers. [17] Finally, distribution pipelines deliver natural gas to homes, businesses, and facilities. [18] According to the O/I Fund, some of the largest AI data center projects are in regions with the densest natural gas transmission pipelines like Texas with over 58,500 miles of pipelines, Louisiana with over 18,900 miles of pipelines, and Oklahoma with over 18,500 miles of pipelines. [19] In Abilene, Texas, Project Stargate is a $500 billion joint venture investment between Oracle, Softbank, and Open AI, building AI data centers that are each half a million square feet. [20] Project Stargate is planning to build ten buildings in the Abilene, Texas location. [21]
The federal administration has given natural gas companies an increasing free hand to expand their production and supply infrastructure. [25] This is good news for midstream companies responsible for transporting natural gas and working to meet the increasing demand of AI data centers. [26] The legislation known as the One Big Beautiful Bill Act signed into law on July 4, 2025, by President Donald Trump, includes tax incentives favorable to the oil and gas industry. [27] A major incentive is lifting restrictions in the Inflation Reduction Act on tax deductions for intangible drilling costs – often between 60% and 80% of total costs. [28]
Can Turbine Supply Keep Up with the AI Boom?
“After years of flat or declining electricity demand, US utilities are projecting rapid growth driven by AI, electrification, and industrial expansion . . . nearly the equivalent of adding a new California, Texas, and New York to the bulk
G rowth T hrough E ducat i on - O c tober / N ov ember / D e c ember 2025 7
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