Locator: 48436B.
Behind the curve: Fed to hold closed meeting today -- link here.
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Back to the Bakken
WTI: $61.21.
New wells:
- Tuesday, April 8, 2025: 31 for the month, 31 for the quarter, 238 for the year,
- 40924, conf, CLR, Entzel 2-14HSL,
- 40913, conf, BR, Cleetwood 7A,
- Monday, April 7, 2025: 29 for the month, 29 for the quarter, 236 for the year,
- 40923, conf, CLR, Rutledge 3-11H,
- 40357, conf, Hunt Oil, Trulson 156-90-11-14H-5,
- 39808, conf, Kraken, Turbodiesel 19-3-31 1H,
- Sunday, April 6, 2025: 26 for the month, 26 for the quarter, 223 for the year,
- 41013, conf, CLR, Alfsvaag FIU 6-31H,
- 40922, conf, CLR, Rutledge 2-11HSL,
- 40373, conf, Slawson, Kahuna 2-6-7H,
- 39809, conf, Kraken, Turbodiesel 19-30-31 1H,
- Saturday, April 5, 2025: 22 for the month, 22 for the quarter, 219 for the year,
- 40372, conf, Slawson, Kahuna 3-6-7H,
- 41034, conf, BR, Cleetwood 7B,
- 39810, conf, Krakken, Turbodiesel 19-30-31-3H,
RBN Energy: tech giants' big-money plans for data centers hinge on gas-fired power. Archived.
Growing power demand for data centers has been one of the biggest stories in energy markets over the past year, with natural gas-fired power plants emerging as the primary choice for developers seeking to provide the 24/7 power these massive, energy-intensive sites require. That has led many energy firms to unveil plans to sell power directly to data centers but many tech giants have also announced their own deals. In today’s RBN blog, we’ll dive into recent announcements from firms like Apple, Amazon, Google, Meta and Microsoft, which intend to collectively spend about $300 billion this year alone to boost their AI (artificial intelligence) capabilities.
As usual, let’s start with a refresher. We noted in Storm Front that a data center can be home to thousands or even tens of thousands of networked computers that process, store and share data. Data centers (see photo below) are energy-intensive, with electrical demand at larger facilities ranging from 100 megawatts (MW) to 2,000 MW and higher. Power demand for data centers is projected to grow substantially with the expansion of AI tools like ChatGPT and Perplexity, which require far more computational power — and energy — than conventional Google searches.
Figure 1. A Data Center in Loudoun County, VA. Source: Yondr
As we noted in Dive In and in Part 1 of this series, there are a lot of uncertainties about the scope and build-out of generation needed to power new data centers — from how much demand will actually grow for various generation fuels to logistical issues like transmission or equipment availability.
In addition to uncertainties about power, numerous logistical hurdles must be managed when selecting a location for a data center. As you’ll see below, many agreements remain vague, underscoring the difficulty of aligning the energy industry’s capabilities with the needs of the tech giants. While many gas producers and power generators are eager to supply their energy needs (in some cases forming joint ventures to advance those plans) and tech firms are hungry for it. Plans for building and siting these massive data centers must resolve a number of complex issues — real estate with water access, transmission lines, fiber optics, steel, and electricity infrastructure. The degree to which these factors can be satisfied will influence where the projects ultimately get built and how they’re powered.
