Bakken Natural Gas Seen as Key to Powering AI Data Center Boom

The massive build-out of AI data centers is straining the U.S. power grid, with equipment backlogs stretching years and creating a pivotal opportunity for reliable power sources, including natural gas from the Bakken formation. According to an analysis from OilPrice.com, the biggest constraint for the AI build-out is power, with transformer supply running about 15% short this year and lead times at transformer makers as long as 26 months.

Major industrial companies that build the turbines, transformers, and switchgear for power generation are booked years in advance. GE Vernova, a leader in gas turbine manufacturing, ended its second quarter with a staggering $176 billion backlog, nearly four times its expected annual revenue. The company's gas turbine order book alone stands at 116 gigawatts of equipment and production slots.

For Bakken operators, this underscores the growing and sustained demand for the natural gas they produce as a baseload fuel for power generation. The report notes that "whether the power comes from gas, solar or nuclear," the physical infrastructure shortage is acute. The prolonged backlog for power generation equipment signals that new gas-fired power plants needed to support data center growth will require planning and fuel sourcing years in advance.

GE Vernova's recent deal with LNG exporter Venture Global, which could be worth up to $17.2 billion for gas-fired power islands and transformer equipment, exemplifies the scale of investment flowing into gas-powered infrastructure. While the Bakken is not a direct exporter of LNG, the deal highlights the intensifying global competition for gas supply and generation capacity that supports domestic industrial demand.

The report frames the current sell-off in power infrastructure stocks as a potential disconnect from physical reality, where order books remain full. For North Dakota, the persistent power crunch reinforces the value of its associated gas production, which can provide the stable, dispatchable generation needed to complement intermittent renewables and feed the nation's growing digital economy.