Alan Armstrong, CEO of Williams Companies, one of the largest energy corporations, has issued a stark warning about the U.S.’s future in the artificial intelligence (AI) race. He claims that the country will fall behind without utilizing natural gas to meet the skyrocketing electricity demands from data centers.

Armstrong emphasizes the growing energy consumption by data centers supporting AI and the rise in electric vehicle adoption, projected to add 290 terawatt hours of electricity demand in the U.S. by the decade’s end.

This increase is comparable to the entire electricity demand of Turkey, the world’s 18th largest economy. Williams Companies, which manages about one-third of the U.S.’s natural gas through a vast pipeline network, including the Transcontinental Pipeline, views natural gas as crucial to addressing this demand spike.

“Only with natural gas can we meet energy needs and advance the electrification that is already underway,” Armstrong stated in an interview. “If we fail to do this, we will fall behind in the AI race.”

Starving for Energy

Data centers, vital for AI processing and storage, require substantial power supplies. Natural gas is considered a reliable backup and baseload power source, especially when renewable sources like solar and wind are not at peak production.

Armstrong recalls, “We’ve run out of alternatives—we cannot meet the needs of our customers without using natural gas.” Several independent data center developers have approached Williams for direct natural gas transportation from the company’s pipeline.

Williams is expanding its Transco pipeline capacity by 15% to accommodate the growing demand. Armstrong states that the U.S. has underinvested in natural gas infrastructure, warning that falling behind in the AI race has significant ramifications. He views this issue as a national security concern, stressing that the nation must advance its AI capabilities or risk stagnation.

A Race for AI Leadership, A Dilemma for Sustainability

The U.S.’s future competitiveness in AI hinges on balancing clean energy goals with the immediate need for reliable power. Critics of Armstrong’s stance may see his claims as prioritizing short-term gain over long-term sustainability. They argue that he focuses solely on supply, overlooking potential improvements in energy efficiency within data centers.

The debate over natural gas’s role in U.S. AI development will continue. While it offers a reliable solution to energy needs, it conflicts with clean energy initiatives. The nation’s path forward may depend on bridging this divide and finding innovative solutions to meet its energy demands.