An industry expert warns natural gas supply constraints could soon inflate costs for Microsoft and Amazon data centers by 20-40%.
A limited partner at Chronometer Partners predicts natural gas will become the next major bottleneck for AI infrastructure, giving producers like EQT and Expand Energy significant pricing power. The comparison to Micron’s memory chip shortages suggests hyperscalers may face similar cost pressures within six months.
Pipeline operator Williams and LNG exporter Cheniere have already seen shares rise 24% and 36% year-to-date, potentially limiting further upside. The gas market’s tightening supply is expected to mirror the memory chip crunch that previously impacted cloud providers.
The expert argues counterparty risk in gas supply has been underestimated, with natural gas costs potentially accounting for 20-40% of hyperscalers’ operating expenses as AI demand accelerates.