3 Natural Gas Stocks Powering the AI Data Center Boom

Key Points

• Williams Companies is seeing rising demand from AI-focused data center developers seeking reliable baseload power.
• EQT Corporation's investment in certified low-emission gas aligns with corporate ESG and data center needs.
• GE Vernova provides the hardware that enables flexible, on-site generation for hyperscale AI data centers with surging power requirements.

Energy stocks are notoriously cyclical. Over the last five years, the sector has lagged the broader market, especially the tech sector, mainly due to the global pandemic and uneven economic recovery.

However, in 2025, natural gas stocks are making a strong rally, and the reason for that surge has to do with one of the hottest tech trends: artificial intelligence (AI).

As tech giants pour billions into building and expanding data centers, the demand for reliable, round-the-clock power is exploding—and much of that power is coming from natural gas.

Think of a data center like a car. It might be engineered for performance, but without fuel, it doesn’t go anywhere. Similarly, AI data centers must run 24/7 to keep up with the relentless processing needs of large language models (LLMs). That requires a stable, scalable power source.

The good news for investors is that this AI-driven energy buildout will play out over years, possibly decades, so it’s not too late to invest in this trend. Here are three natural gas stocks well-positioned to benefit.

Williams: Data Centers Moving Closer to the Pipeline

The Williams Companies Inc. NYSE: WMB operates one of the largest interstate natural gas pipeline systems in the United States, with a network spanning key energy-producing regions and high-growth population centers.

The company has explicitly cited rising demand from data center developers, particularly those planning large-scale AI-ready facilities. These projects require access to high-volume, low-cost, and reliable baseload power. That closely aligns with Williams' pipeline and gathering assets in regions like the Gulf Coast, Appalachia, and the Southeast.

Data center developers are now actively selecting sites near existing natural gas infrastructure to reduce both cost and permitting complexity. In some cases, Williams is engaging in direct discussions with developers to co-locate facilities or provide dedicated capacity. This is increasing the company’s capital expenditures (capex) spending, a fact that was reflected in its second-quarter earnings, in which Williams missed earnings per share (EPS) forecasts by three cents. It also shows up in the company’s 1.75% debt-to-equity ratio, which is above its historical average.

Plus, at 29x earnings, WMB stock is expensive to its sector and to itself. However, investors can collect a dividend with a 3.45% yield to mitigate the stock’s range-pound performance in the past year.

EQT: Certified Low-Emissions Gas Are a Competitive Edge

Casual industry observers might not think of putting natural gas companies and innovation in the same sentence. However, EQT Corporation NYSE: EQT may make investors rethink their position.

EQT is the largest natural gas producer in the United States and an aggressive investor in certified low-emissions natural gas. The company participates in third-party certification programs to deliver gas tagged as “responsibly sourced” or “certified low-emissions.”

This is increasingly important for data center developers because of the 24/7 nature of the energy demand. The search for clean energy sources is driving nuclear energy demand. But that will take many years to build out. Low-emissions natural gas is here today, and so is the opportunity for EQT.

A recent pullback in EQT stock makes this an attractive entry point, particularly with analysts forecasting 32% earnings growth over the next 12 months. With a forward P/E around 15x, the company trades at a discount to itself and the sector. It also has an attractive debt-to-equity ratio of 0.32.

Powering AI with Gas Turbines and Grid Reliability

The first two natural gas stocks on this list have been involved with transportation. GE Vernova NYSE: GEV, the energy spin-off from General Electric, takes a different route: manufacturing the hardware essential for natural gas applications.

GEV has been one of the best-performing stocks of 2025, up 96% as of Aug. 7. It is also one of the world’s leading producers of natural gas turbines, building the kind of equipment needed to power regions where AI data centers may create massive, unpredictable demands on the grid. 

As hyperscale data centers increasingly seek on-site or nearby generation, GE Vernova’s turbines offer a reliable, grid-independent power solution, especially in constrained utility capacity.

The company is also a leader in grid modernization, supplying transformers, circuit breakers, and smart grid software to help utilities manage surging electricity demand. In short, GE Vernova doesn’t just sell energy equipment; it builds the infrastructure powering the AI era.

Trading at 100x forward earnings, GEV stock is expensive. However, it’s also expected to grow earnings at 67.8% over the next 12 months. That demand is a key reason why analysts are increasing their price targets for GEV stock.