Booming data center energy demand driving up gas company valuations

Mella McEwen | Source: San Antonio Express News | Posted 05/24/2025

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The difference in valuations between gas and oil has narrowed as the power-hungry computing sites target the Permian Basin and its natural gas resources. 


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Natural gas producers are experiencing a surge in demand driven by the growth of data centers, which is positively impacting their valuations. A recent study by S&P Global Commodity Insights indicates that the gap in enterprise value between U.S. gas and oil companies has narrowed significantly, with the difference decreasing from $33,000 a year ago to just $13,000 as of mid-April. This shift is largely attributed to the increasing interest of data centers in the Permian Basin, known for its natural gas resources, as they seek reliable energy sources to meet their high power demands.

Several initiatives are underway to capitalize on this trend, including a joint venture between New Era Helium and Sharon AI Inc. to build a large AI and computing facility powered by natural gas. Additionally, Five Point Infrastructure has committed substantial investment to attract tech companies to the region. The demand for energy from data centers is projected to rise significantly, with estimates suggesting it could account for up to 12% of total U.S. energy demand by 2030. This evolving landscape is also reflected in the Marcellus Shale, where new developments signal a potential shift in the market dynamics for Appalachian gas.



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Source Link: https://www.expressnews.com/business/article/natural-gas-data-center-demand-20336820.php

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