AI Data Center Boom Requires A Lot Of Natural Gas 

UBS expects the AI data center construction boom, which was ignited during the Trump era, to generate structural tailwinds for the U.S. economy starting in 2026. In a recent conversation, one asset manager backing a mega data center project in Texas explained it's going to be "sprint" mode for the industry through the end of the decade. Adding this all up is not rocket science, and that's why a new UBS note maintains a bullish outlook on data center-driven power demand, particularly for natural gas-linked utilities and midstream names.

UBS analysts, led by Manav Gupta, noted that U.S. hyperscalers are pouring hundreds of billions into AI data centers, driving an unprecedented surge in power demand.