Artificial Intelligence (AI) isn’t just changing how we live and work — it’s transforming how we power the future. That leads to a “shocking” investment opportunity in electric power generation and the fuel used for it. Check out the First Trust Natural Gas ETF (FCG), notes Sean Brodrick, editor at Weiss Ratings Daily.
As the use of AI soars, it’s putting an unprecedented strain on the American power grid. AI computing demands up to 100 times more electricity than traditional workloads. That’s because large language models like GPT-4 need massive power for training — reportedly tens of megawatt-hours just to bring one model online.
That’s why AI is fueling a historic boom in data center construction, with hyperscale centers now guzzling between 100 and 150 megawatts, each — triple what they needed five years ago. Goldman Sachs estimates that 47 gigawatts of new electricity will be required just for US data centers by 2030.
All this raises a critical question: Where is that power going to come from? While renewables like solar and wind are crucial for the long haul, they’re not always reliable when you need electricity 24/7 — which is non-negotiable for AI infrastructure.
But natural gas is fast, flexible, and ready now. You can build a gas plant in two to four years. It plugs into the existing grid. It’s cost-effective — much of it rides in as a byproduct of oil drilling. And perhaps most importantly, it runs around the clock.
Want to invest in this trend? FCG is an option if buying individual stocks is too risky for you. It holds a basket of leading natural gas producers positioned to benefit from this explosive surge in demand. FCG gets a “C+” from Weiss Ratings, has an expense ratio of 0.6%, and sports a fat dividend yield of 3.63%.
In this race to the future, natural gas could push profits into overdrive.
Recommended Action: Buy FCG.
