AI power demand will cause a natural-gas crisis, says top investor

Chronometer Partners’ Matthew Smith warns that investors and markets are not ready for a coming natural-gas shortage. The main driver, he says, is the rapid growth of artificial intelligence. AI data centers require massive amounts of electricity. To meet that demand, power plants will burn more natural gas. Smith argues that this surge in consumption will outpace current supply, creating an “unprecedented deficit.” He advises buying stocks in natural-gas producers and infrastructure companies now, before the crunch hits. Smith did not name specific tickers but said the opportunity lies in firms that control gas reserves and pipelines. The warning comes as energy analysts debate whether the grid can handle the AI boom. For now, Smith believes most investors are underestimating the scale of the problem.