To attract more data centres to New Zealand, we need to have an honest conversation about natural gas.
Data centres currently use about 0.6% of New Zealand's electricity, but AI is driving demand for more and larger data centres. For our country, this could represent an increase of hundreds of megawatts of demand.
This will increase pressure on our already stressed electricity system. Data centres need firm, reliable, affordable energy to operate around the clock - they can’t shut down when weather-generated electricity is short.
For New Zealand, the absence of natural gas and reliable firming generation is a significant barrier to attracting more data centres.
The latest International Gas Union’s report ‘The role of gas in powering AI-driven energy demand’ sheds light on how AI-driven data centre growth is reshaping global electricity systems — and why dispatchable generation, especially natural gas, is becoming increasingly essential.
Read the full report here: https://lnkd.in/eX763Frx
Natural gas doesn’t replace the long-term transition, it supports it. And if New Zealand wants to capture the economic upside of data centre investment while maintaining a resilient, low-emissions energy system, we need to be clear-eyed about the role gas plays in bridging that gap.
hashtag#MoreGas hashtag#NaturalGas hashtag#PowerSystems hashtag#AI hashtag#DataCentres hashtag#GasForEnergy hashtag#Electricity hashtag#SystemReliability
The Role of Gas in
The Role of Gas in Powering AI-Driven Energy Demand
Report
#AI Data Centres
#International Gas Union
#Natural Gas
#Gas
Posted
15 January 2026
Last updated
15 January 2026
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Electricity demand growth is surging as data centres are becoming the new “industrial load” of the artificial intelligence (AI) economy, and their electricity consumption is projected to double to 800-1000 TWh by 2030.
While renewables are expected to provide about half of the data centres’ electricity consumption by 2030, their inherent variability creates a mismatch with the flat, 24/7 load profile of data centres which requires not only more generation but, also, significantly more dispatchable capacity.
This Report argues the case for long-term energy planning to remain fact-based, transparent, and grounded in realistic assumptions about electricity infrastructure and the rapid expansion of AI driven technology, while demonstrating the role of Gas in powering this ever-increasing AI-driven energy demand.
Your daily #petrotech - the NZ gas lobby just flat-out saying out loud that data centres are going to be powered by their lovely fossil fuels