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Reliability Matters: How Natural Gas Infrastructure Supports the U.S. Mid-Continent’s AI-Driven Power Demand
By Annette Anderson
Director of Marketing, Spire Midstream
Data centers in the U.S. historically have been built near larger population centers and business markets along the West and East coasts, particularly in major hubs like Silicon Valley, Northern Virginia and New York/New Jersey. Today, the Midwest and Mid-Continent are emerging as among the nation’s fastest-growing data center hubs due to less expensive land and a diverse energy mix.
At the same time, data centers increasingly require more power to run the latest cloud computing and AI technologies. According to a Department of Energy report, data centers accounted for about 4.4% of U.S. electricity consumption in 2023, a figure projected to rise up to 12% by 2028. There’s a convergence of these trends in the middle of the U.S., placing strain on the power grid and creating additional challenges for power sector resource planning leaders and utility operators. For example, in states like Oklahoma and Missouri, there’s rising power demand from data center development at the same time as coal plants are being retired and a conversion to natural gas. In addition, wind energy – an intermittent power source – is increasing in the Mid-Continent and needs to be backed up with dispatchable power, too.
Natural gas infrastructure can be a reliability backbone for electric power generation in the Midwest and Mid-Continent amid the surge in demand from data centers and the changing energy landscape. Best practices from coast to coast have shown that industry collaboration and natural gas infrastructure – including pipelines and gas storage facilities – can help electric utilities serving these regions to address growing data center needs and ensure a more reliable power grid for all of their customers. Power sector leaders can consider the following two key action steps and opportunities.
Plan for high reliability and accessibility.
Data centers require a very high and predictable level of power supply reliability 24/7/365, often aiming for a “five nines” availability, which translates to 99.999% uptime or only about five minutes of downtime per year. This is considered the industry standard for high reliability data centers. Ample natural gas transmission facilities and other infrastructure can help provide this highly stable and consistent energy supply, as well as address the pressing need for more capacity.
As a planning strategy, utility operators can consider firm transportation contracts with midstream companies versus interruptible contracts to guarantee delivery of a specific amount of natural gas to ensure access and reliability, especially during peak demand periods. While firm contracts may be more expensive than interruptible contracts, they provide greater security and reduce the risk of fuel disruptions, further helping utilities meet energy demands of data centers and other customers.
Connect with regional energy stakeholders to coordinate and manage demand.
Power sector leaders should attend and/or convene forums to proactively address the implications of data center expansion through better data sharing, load growth forecasts and joint planning. For example, the LDC Gas Forums, with its six annual events, attracts buyers and sellers to not only do business but discuss crucial topics, including data center challenges and solutions to ensure security of supply, access and affordability.
At the recent LDC Gas Forums Mid-Continent in September 2025, a panel of industry stakeholders from across the value chain weighed the pros and cons of several alternatives, including contracting for incremental power on the existing utility power grid; and arranging for self-generated, on-site power using natural gas. The region’s data center development and expansion was also a recurring theme during other conference presentations and informal discussions. These types of open industry conversations and aligned efforts from all parts of the supply chain are vital for addressing the region’s evolving energy grid and meeting massive power demands from current and future data centers.
The situation in the Midwest and Mid-Continent market also underscores the need for more natural gas transmission facilities like pipelines, processing plants and storage to supply the growing requirements for back-up generation and new power demand that will be served by gas-fired generation. Fostering greater coordination among all stakeholders can facilitate better operational planning and resource allocation, and it can inform midstream companies’ investment decisions to ensure adequate capacity and reliability for many years to come.
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Annette Anderson is Director of Marketing at Spire Midstream, a business unit of St. Louis-based Spire Inc. (NYSE: SR), a natural gas company serving 1.7 million customers in Missouri, Alabama, and Mississippi, providing natural gas to power their homes and businesses. She has more than two decades of experience in the natural gas industry with key roles in marketing, business development and strategy. With Spire Midstream, she leads marketing efforts to deliver value to customers from midstream assets. Spire Midstream’s assets are Spire Storage West, Spire Storage Salt Plains, Spire STL Pipeline, Spire MoGas Pipeline and Omega Pipeline. To learn more, visit https://spireenergy.com/spire-midstream.
October 28, 2024
Meeting America’s Growing Natural Gas Demand:
The Role of Infrastructure in Ensuring Reliability
Scott Smith, President
Spire Midstream
As the U.S. moves toward a more diversified and sustainable energy mix, natural gas continues to play a critical role, not only as a primary heating source itself but also in balancing the electric grid, especially during periods of heightened demand. Natural gas infrastructure, including pipelines and storage facilities, is essential as gas demand continues to rise across multiple sectors. For natural gas suppliers and local delivery companies, ensuring reliability in the face of growing demand, volatile energy markets and new regulatory pressures is key.
Natural Gas’ Rising Demand
The demand for natural gas in the U.S. has been on a steady climb. According to the U.S. Energy Information Administration (EIA), since 2013, natural gas consumption has grown by 37%1, driven by increased exports, the retirement of coal plants and the growing role of natural gas in the power generation sector– especially as a backup for intermittent renewable sources like wind and solar. This highlights the urgent need to expand infrastructure to support natural gas supply and distribution.
Additionally, the need for reliable energy supplies is amplified by increasing use of data centers and other high-energy-demand sectors. This demand is expected to grow further with the expansion of liquefied natural gas (LNG) exports, which are predicted to reach up to 40 Bcf/d by 2030.
The Infrastructure Gap
Despite growing demand, the infrastructure required to deliver natural gas safely and reliably has not kept pace. While demand has grown by 37% between 2013 and 2022, pipeline capacity has only increased by 21%, and storage capacity has remained relatively unchanged. This infrastructure development lag creates bottlenecks in supply, particularly during peak demand periods or extreme weather events like Winter Storm Elliott in 2022. That event exposed the gas supply chain’s vulnerabilities, with widespread generation outages across the U.S. The shortfall underscored the pressing need for additional pipeline capacity to maintain a resilient system.
Natural Gas Storage Benefits
Natural gas storage facilities are a crucial part of addressing these challenges. Spire Midstream’s Spire Storage West storage facility is located 60 miles southwest of the Opal Hub in Wyoming, and serves as a major storage facility for the western U.S., connecting to key pipelines that supply cities such as Los Angeles, Seattle, Denver and Phoenix. These storage facilities offer flexibility by allowing gas to be stored when demand is low, such as in the summer, and withdrawn during peak periods in the winter.
The expansion of facilities like Spire Storage West is crucial for meeting future energy needs. The current $200 million expansion project at Spire’s Clear Creek facility will increase storage capacity from 23 Bcf to 39 Bcf by 2025. This expansion will help meet the growing need for reliable natural gas supplies in the western U.S., which increasingly relies on intermittent renewable energy sources.
A Balanced Approach to Energy Reliability
The energy grid faces challenges beyond gas infrastructure limitations. As the grid incorporates more renewable energy sources, managing variability from solar and wind becomes more complex. Additionally, renewable growth is forecasted to drive more hourly swings in load, further emphasizing the importance of natural gas infrastructure to balance the grid. Natural gas, with its fast-ramping capabilities, ensures consistent power supply when renewable generation drops.
Expanding infrastructure to support growing demand for natural gas remains critical and continued investment into new infrastructure is essential to meet future energy needs.
What’s Next for Natural Gas?
As the U.S. faces increasing pressure to meet both clean energy mandates and rising energy demands, natural gas infrastructure plays a pivotal role in ensuring reliability. Expanding pipeline capacity and storage facilities is essential to support this transition, providing the flexibility and reliability needed to balance the grid. The expansion of Spire Storage West is a prime example of how investment in natural gas infrastructure can help the U.S. meet both current and future energy demands.
With the right mix of infrastructure investment and technological advancements, natural gas will continue to be an integral part of America’s energy landscape, bridging the gap between traditional energy sources and a cleaner, more sustainable future.
1 U.S. Energy Information Administration. “U.S. Natural Gas Prices and Historical Data.” EIA.gov, U.S. Department of Energy
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Scott Smith is president of Spire Midstream, a business unit of St. Louis-based Spire Inc. (NYSE: SR), a natural gas company serving 1.7 million customers in Missouri, Alabama, and Mississippi, providing natural gas to power their homes and businesses. He is a veteran energy industry executive with years of experience delivering value from midstream assets. Spire Midstream assets Spire Storage West, Spire Storage Salt Plains, Spire STL Pipeline, Spire MoGas Pipeline and Omega Pipeline. To learn more, visit https://spireenergy.com/spire-midstream.