Thursday, November 27, 2025

AI Factories Tend to Rely on Lots of Natural Gas

The hyperscale high-performance “computing as a service” providers (AWS, Azure, Google, Meta) mostly purchase renewable energy and report high market-based renewable energy percentages, and also use local power grid suppliers that rely on a high share of natural-gas generation (especially in Texas and Northern Virginia). 


Company / AI factory

Company claim (market-based renewables)

Major data-center regions (grid natural-gas share)

Degree of access to natural gas (High / Medium / Low)

Sources

Amazon / AWS

100% of electricity consumed matched with renewable energy (2023–2024, market-based). (Amazon Sustainability)

Heavy footprint in Northern Virginia (PJM/VA — VA generation >50% gas) and Texas (ERCOT — large gas share). US grids overall ~40% gas. (U.S. Energy Information Administration)

High

AWS has major capacity in gas-heavy US grids (Northern VA, TX). Although AWS reports “100% matched” renewables market-wide, the local grid supply for many AI clusters is still gas-dominated, so AWS has strong practical access to gas power for fast capacity scaling. (Amazon Sustainability)

Microsoft / Azure (incl. Azure OpenAI / OpenAI workloads on Azure)

Microsoft reports procuring enough renewables to match 100% of global electricity consumption (market-based). (Microsoft CDN)

Large Azure presence in Northern Virginia, Texas, and other US regions (many gas-heavy grids). US/TX/VA grid gas shares high (see EIA). (U.S. Energy Information Administration)

High

Microsoft powers OpenAI workloads on Azure; Azure’s major data-center regions overlap with gas-heavy grids (so operational access to gas is high despite market-based renewable matching). (The Official Microsoft Blog)

Meta (Facebook / Meta AI data centers)

Meta reports matching much (or all) owned/operated data-center electricity with renewables in its accounting (market-based) while expanding new local projects. (Meta Sustainability)

Big builds in Texas (Coleman County and other TX sites) and Northern Virginia; TX and VA grids have large natural-gas shares. (pv magazine USA)

High

Meta is rapidly expanding AI capacity in TX/VA — both regions with heavy natural-gas generation — so operational access to gas generation is high even as Meta signs renewables locally/contractually. (pv magazine USA)

Google / Google Cloud

Google reports having matched 100% of annual electricity consumption with renewables for years (market-based) and publishes regional hourly carbon-free percentages. (blog.google)

Google’s footprint includes Midlothian, TX (gas-heavy) but also WA/OR (hydro), and other lower-gas grids — a more geographically mixed footprint. (RTO Insider)

Medium

Because Google’s data centers are more geographically diverse (some gas-heavy, some hydro/low-gas), its practical access to gas is medium overall. It also reports regional CFE (carbon-free energy) metrics to show hourly variation. (blog.google)

Oracle Cloud

Oracle claims high renewable coverage in some disclosures (Oracle reports strong renewable procurement claims). (Oracle)

Oracle’s cloud footprint is smaller than hyperscalers and more concentrated in commercial colocation markets (regional mixes vary). Many U.S. colo grids include substantial gas. (Oracle Blogs)

Medium–Low

Oracle’s absolute compute footprint is smaller and it emphasizes renewable procurement; depending on region, local grid gas exposure varies — overall less direct exposure than the largest hyperscalers. (Oracle)

AI firms that rent cloud capacity (OpenAI, Anthropic, Stability, etc.)

OpenAI: uses Azure (Microsoft) for most workloads; Anthropic & others use mixtures of Google Cloud / Azure / AWS (multi-cloud). (The Official Microsoft Blog)

Their practical gas access ≈ the cloud provider(s) they run on. If on Azure/AWS/Google in TX/VA, access is High/Medium as above. (The Official Microsoft Blog)

Varies (follows provider)

These AI model operators rarely own global data centers; they rely on hyperscalers. So their degree of access to gas ≈ the hosting cloud’s regional grid exposure. OpenAI on Azure → High by the table above. Anthropic’s deals (Google/Azure) mean varied exposure. (The Official Microsoft Blog)


The “neo cloud” providers tend to have medium to high levels of access to natural gas for power, though the emphasis on “renewable” sources might not be as high a priority. 


Sites like CoreWeave’s Project Horizon and Galaxy/Helios (West Texas) are virtually designed around proximity to natural-gas infrastructure. For frontier-scale AI (multi-hundreds of megawatts to gigawatt scale), this gives them very-high access to gas-powered electricity.


TeraWulf’s Lake Mariner (NY) is a contrasting model: using mostly low-carbon grid supply (hydro/nuclear/clean energy) that is better for carbon-intensity, with lower reliance on gas.


Hut 8 has a mixed strategy: some sites (Canada) on cleaner grids, some (Texas, Panhandle) on gas-heavy or mixed grids, giving it a balanced, diversified exposure depending on where its compute load is run.


Riot Platforms (Rockdale / Corsicana) are among the most gas-exposed of publicly traded neo-cloud specialist compute providers. 


Company

Major sites / where compute is (or is planned to be) sited

Dominant local power sources / relevant company energy plans

Degree of access to natural gas power (High / Medium / Low)

Why / notes & primary sources

CoreWeave

Rapid expansion into West Texas / Permian projects (Project Horizon / Poolside JV), plus European builds (UK, Spain) and colo deals.

West Texas projects explicitly target locations with access to low-cost natural gas (Permian/Delaware basin) while some EU/UK sites emphasize renewable-backed supply. Net: strong access to local natural gas where it matters for large-scale AI campuses.

High

CoreWeave is anchoring large West Texas campuses that are being designed around low-cost gas-rich markets (Permian Basin/Project Horizon) while also deploying renewables-backed facilities in Europe. This gives CoreWeave high practical access to gas power for large-scale, fast-growing AI capacity. (Barron's)

Hut 8 Corp.

Mixed footprint: multiple Canadian colo/HPC sites (Vancouver, Kelowna, Mississauga/Vaughan), mining campuses (Alberta, Medicine Hat), and a growing U.S. development pipeline (planned US sites, Louisiana/Baton Rouge acquisitions announced).

Canada: strong hydro in some provinces (Quebec/BC/ON) → low gas; Alberta sites and some U.S. development pipeline → higher fossil/gas exposure. Company runs both renewables/hydro-backed sites and gas-exposed mining/power projects.

Medium

Hut 8’s compute estate is geographically mixed: many Canadian colo/HPC sites sit on low-carbon hydro grids, but Hut 8 also owns/operates power-first mining/data campuses in Alberta/other U.S. projects that expose it to gas/thermal generation. Net = medium. (Hut 8 HPC)

TeraWulf (TeraWulf Inc.)

Lake Mariner campus (Somerset/Buffalo, NY) — large hydro/low-carbon facility; Nautilus in Pennsylvania; plus announced / planned large campus development in Abernathy, Texas (joint venture with Fluidstack / Google backing).

Lake Mariner: predominantly hydro / low-carbon (NY grid + hydropower). Abernathy (TX) project would sit in gas-heavy Texas grids. Company messaging emphasizes “sustainably powered” HPC but also expansion into Texas.

Medium

TeraWulf’s core existing operations (Lake Mariner) are strongly low-carbon/hydro-aligned → low local gas exposure today. But an explicit expansion into Abernathy, Texas (large planned capacity) points to future higher gas exposure at those sites. Overall practical access = Medium (mixed existing low-gas + planned gas-region capacity). (Data Center Map)

MARA / Marathon Digital (MARA Holdings)

Large portfolio: Garden City, Granbury, McCamey (TX), multiple West Texas / Delaware Basin projects, plus international sites. Company explicitly pursuing integrated power + data center builds in West Texas (MPLX partnership).

Mix today: some wind/hydro-adjacent sites (Garden City adjacent to wind), BUT public plans to build gas-fired generation facilities in West Texas (MPLX partnership) — initial ~400 MW with potential to scale to 1.5 GW using natural gas from Delaware Basin.

High (increasing)

Marathon/MARA has both renewables-adjacent assets (e.g., Garden City wind) and explicit, recent plans/partnerships to build gas-fired generation co-located with data centers in West Texas (MPLX deal). That makes MARA’s practical access to natural gas high and rising as gas-gen projects come online. (Mara)

Riot Platforms (Riot)

Large Texas footprint (Rockdale, Corsicana) plus Kentucky facility — Rockdale is one of North America’s largest mining campuses.

Texas grids (ERCOT/North Texas) have very high shares of natural-gas generation at times; Riot’s large Texas facilities operate in gas-dominated grids and have been criticized for high fossil generation intensity. Riot’s filings list Texas facilities as core.

High

Riot’s major capacity (Rockdale, Corsicana) sits in Texas, a grid and market with large natural-gas generation share — giving Riot high practical access to gas-fired electricity for large scale compute/mining workloads. (Riot Platforms)


Of course, companies operating multiple sites will have some sites using more or less natural gas, depending on what other sources are available (hydro, for example). 


Company

Site

City

State

Natural Gas Access

Source

CoreWeave

Project Horizon (Longfellow Ranch)

Pecos County

TX

High

https://poolside.ai/blog/announcing-project-horizon; https://datacenterdynamics.com/en/news/ai-startup-poolside-teams-up-with-coreweave-on-2gw-data-center-in-texas/

CoreWeave

Helios (Galaxy) - Dickens County

Afton/Dickens County

TX

High

https://investor.galaxy.com/news/; https://www.datacentermap.com/usa/texas/dickens/helios-data-center/

CoreWeave

Livingston / NJ operations (representative)

Livingston

NJ

Medium

https://www.coreweave.com/news/coreweave-announces-partnership-with-foundation-model-company-poolside-to-deliver-ai-cloud-services

TeraWulf

Lake Mariner

Barker (Lake Mariner)

NY

Low/Medium

https://www.terawulf.com/lake-mariner-mining/; https://www.gem.wiki/Lake_Mariner_facility

TeraWulf

Nautilus (Pennsylvania)

Pittsburgh area (Nautilus)

PA

Medium

https://investors.terawulf.com/news-events/press-releases/detail/83/terawulf-announces-july-2024-production-and-operations

Hut 8

King Mountain / McCamey (JV)

McCamey

TX

Medium

https://hut8.com/2025/02/04/hut-8-operations-update-for-january-2025/; https://www.nasdaq.com/press-release/hut-8-operations-update-february-2025-2025-03-06

Hut 8

Vega / Texas-Panhandle (planned)

Vega

TX

Medium

https://hut8.com/news-insights/press-releases/hut-8-announces-plans-to-develop-four-new-sites

Marathon (MARA)

Garden City

Garden City

TX

Medium/High

https://baxtel.com/data-center/marathon-digital-garden-city-tx; https://www.mara.com/posts/mara-announces-25-megawatt-micro-data-center-project-powered-by-excess-natural-gas-from-oilfields

Marathon (MARA)

McCamey / West Texas projects

McCamey

TX

High

https://www.mara.com/posts/mara-announces-25-megawatt-micro-data-center-project-powered-by-excess-natural-gas-from-oilfields; https://ir.mplx.com/CorporateProfile/press-releases/news-release/2025/MPLX-and-MARA-Announce-Collaboration-on-Integrated-Power-Generation-and-Data-Center-Campuses-in-West-Texas

Riot Platforms

Rockdale

Rockdale

TX

High

https://www.riotplatforms.com/bitcoin-mining/rockdale/

Riot Platforms

Corsicana

Corsicana

TX

High

https://www.riotplatforms.com/bitcoin-mining/corsicana/; https://www.mapquest.com/us/texas/riot-platforms-inc-721940928

Core Scientific

Dalton (GA)

Dalton

GA

Medium

https://www.datacentermap.com/c/core-scientific/

Core Scientific

Grand Forks (ND)

Grand Forks

ND

Low/Medium

https://www.datacentermap.com/c/core-scientific/

Core Scientific

Muskogee (OK)

Muskogee

OK

Medium/High

https://www.datacentermap.com/c/core-scientific/

Compute North (historical)

Big Spring (TX)

Big Spring

TX

High

https://dgtlinfra.com/compute-north-chapter-11-bankruptcy-filing/; historical filings

Compute North

North Sioux City (SD)

North Sioux City

SD

Medium

https://dgtlinfra.com/compute-north-chapter-11-bankruptcy-filing/

Compute North

Kearney (NE)

Kearney

NE

Medium

https://dgtlinfra.com/compute-north-chapter-11-bankruptcy-filing/

TerraWulf (Beowulf/TeraWulf)

Lake Mariner (alternate coord)

Barker/Buffalo area

NY

Low/Medium

https://www.datacentermap.com/usa/new-york/buffalo/lake-mariner-data/; https://www.gem.wiki/Lake_Mariner_facility

TeraWulf

Nautilus (PA)

Pittsburgh area

PA

Medium

https://investors.terawulf.com/news-events/press-releases/detail/83/terawulf-announces-july-2024-production-and-operations

Greenidge

Dresden (Finger Lakes)

Dresden

NY

Low/Medium

https://www.greenidge.com/operations/

CoreWeave

Midlothian / Dallas area (representative)

Midlothian

TX

High

news coverage of cloud builds in Midlothian/Dallas area

Marathon (MARA)

Granbury (Wolf Hollow / Granbury)

Granbury

TX

High

Compute North and Marathon filings; company press releases

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