In a bold assertion that underscores the ongoing tension between global energy transitions and surging technological demands, Saudi Aramco CEO Amin Nasser declared that fossil fuels, rather than renewables, will be the primary force driving the electricity surge needed for artificial intelligence (AI) and electric vehicles (EVs). Speaking at an industry conference on October 13, 2025, Nasser criticized the slow pace of renewable adoption, stating, “While the icons of the transition are still clearly stuck in first gear, hydrocarbons are largely carrying the extra load.” He further emphasized that the current global shift is “not a true energy transition; it’s an energy addition,” where fossil fuels are stepping in to meet overwhelming demands.
Nasser’s remarks highlight a “demand tsunami” from AI data centers and EVs, which is straining power systems worldwide and prompting governments to reconsider stringent climate goals. This comes amid Aramco’s own strategic adjustments, including delaying three domestic chemical plants in favor of Asian expansions, as the company navigates lower oil prices and hefty dividend obligations to the Saudi government.
As AI continues to reshape industries, the reliance on hydrocarbons for reliable, scalable energy could redefine the energy landscape, particularly in regions poised to capitalize on this boom.
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U.S. States Primed for AI Data Centers: A Focus on Fossil Fuel Abundance
In the United States, the AI revolution’s energy needs are amplifying the appeal of states with robust, cost-effective power grids—many of which draw heavily from fossil fuels like coal and natural gas for their reliability and affordability. According to a recent analysis of U.S. Department of Energy data, 10 states stand out for their inexpensive and dependable electricity, making them ideal for energy-intensive AI data centers that require uninterrupted 24/7 operations.
While some lean on renewables, several rely significantly on fossil fuels, providing a stable baseload power that AI infrastructure demands.
Here’s a breakdown of key states from this list, emphasizing those with strong fossil fuel profiles:Wyoming: With coal-fired plants generating around three-quarters of its electricity and boasting one-third of the nation’s recoverable coal reserves, Wyoming produces far more power than it consumes. Its grid offers very low costs (9.15¢/kWh) and minimal outages (1.99 hours/year), making it a surplus powerhouse for AI expansions.
Utah: Coal accounts for nearly half of the generation here, supplemented by natural gas. Affordable rates (9.03¢/kWh) and low outages (2.12 hours/year) align with the state’s Strategic Energy Plan to double production by 2025, positioning it well for data center growth.
North Dakota: Abundant coal and natural gas supplies fuel this state, which generates about one-third of its power from renewables but relies on fossils for surplus energy. It has the cheapest electricity nationwide (8.00¢/kWh) and moderate outages (3.48 hours/year), ideal for high-demand AI facilities.
Nebraska: Most electricity comes from coal-fired plants, with public ownership ensuring grid stability. It claims America’s most reliable grid (1.21 hours/year outages) at low costs (9.19¢/kWh), and recent legislation supports high-power users like data centers while bolstering infrastructure.
Montana: Natural gas plays a key role alongside wind and hydro, with low outages (1.98 hours/year) and moderate prices (10.84¢/kWh). Upcoming transmission projects like the North Plains Connector will enhance connectivity, aiding AI’s rapid deployment.
Other states in the top 10, such as Iowa (coal declining but still present) and South Dakota, mix fossils with renewables but benefit from fossil reliability. States like Texas—though not in this specific ranking—are also attracting AI investments due to their vast natural gas resources and independent grid (ERCOT), which provides flexibility amid fossil dominance. Overall, fossil-rich states offer the baseload stability AI needs, potentially outpacing renewable-heavy areas in the short term where grid upgrades lag.
Top Companies to Invest In: Capitalizing on Fossil Fuels for AI Energy
As AI data centers drive electricity demand to potentially double by 2030, investors are eyeing companies tied to fossil fuels—particularly natural gas—for their role in providing quick, reliable power solutions amid grid bottlenecks.
Natural gas stands out as a “bridge fuel” with lower emissions than coal, enabling off-grid or behind-the-meter setups that can be operational in 18-24 months, far faster than nuclear or renewables.Here are three standout companies positioned to benefit:EQT Corporation (NYSE: EQT): As the largest U.S. natural gas producer, EQT supplies low-emissions gas directly to AI hyperscalers and projects like Pennsylvania’s Homer City data campus, transitioning from coal to gas. With 32% earnings growth forecasted, it’s a prime play on AI’s continuous power needs.
Williams Companies (NYSE: WMB): This pipeline giant connects natural gas supplies to AI hubs, facilitating co-located power generation to bypass grid delays. Examples include Ohio’s New Albany project, where gas powers data centers directly, supporting AI’s projected surge from 16 to 49 gigawatt-hours hourly by 2035.
GE Vernova (NYSE: GEV): Specializing in natural gas turbines and grid equipment, GE Vernova powers on-site AI facilities amid reliability issues. Partnerships like Chevron’s for gas-fired plants (online by 2026) and a 98% year-to-date share rise make it essential for scaling AI energy infrastructure.
These investments align with Nasser’s vision, where hydrocarbons fill the gap left by slower transitions. However, as always, investors should consider market volatility, regulatory shifts, and diversification. The AI-fossil fuel nexus could yield significant returns, but it’s part of a broader energy evolution.
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