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Who doesn’t love a good round of FOMO? From dot-com to Web 2.0, virtual reality to blockchain, the tech industry has had its share of being too afraid to miss out on a trend.

The AI bubble is the big daddy of them all. Its first offspring — the rush to lock down power for data centers — is now begetting a mad dash to secure natural gas supplies and equipment. If FOMOs could have babies, then the AI bubble is already having grandkids.

Microsoft said on Tuesday that it’s working with Chevron and Engine No. 1 to build a natural gas power plant in West Texas that could grow to produce 5 gigawatts of electricity. This week Google confirmed that it’s working with Crusoe to build a 933 MW natural gas power plant in North Texas. And last week, Meta announced that it was adding another seven natural gas power plants to its Hyperion data center in Louisiana, bringing the site to 7.46 GW of capacity — enough to power the entire state of South Dakota.

Are we missing anyone?

The recent investments are concentrated in the southern U.S., home to some of the largest natural gas deposits in the world. Recently, the U.S. Geological Survey estimated that there’s enough in one region to supply energy to the entire United States for 10 months by itself. Every data center operator seems to want a part of it.

The scramble for natural gas has led to a shortage of turbines for the power plants, with prices likely to rise 195% by the end of this year relative to 2019 prices, according to Wood Mackenzie. The equipment contributes 20% to 30% of the cost of a power plant. Companies won’t be able to place new orders until 2028, and it’s taking six years to get turbines delivered, the consultancy notes.

That means tech companies are betting that the AI fever won’t break, that AI will continue to need exponential amounts of power, and that natural gas generation will be necessary for success in the AI era.

They may come to regret that third assumption.

Though natural gas supplies in the U.S. are plentiful, and because shipping the fuel isn’t cheap, the country remains somewhat insulated from the turmoil in the Middle East. But supplies aren’t unlimited, and recently, growth in production in the big three regions — responsible for three-quarters of all U.S. shale gas production — has slowed considerably. 

It’s not clear how insulated tech companies are from price swings since none of them have disclosed specific terms of their agreements. A lot will depend on how firm the price is in those contracts. 

Even if the contracted prices are as firm as can be, the companies could still face repercussions.

Because natural gas generates about 40% of the electricity in the U.S., according to the Energy Information Administration, electricity prices are closely tied to natural gas prices. Tech companies might be able to shield themselves from scrutiny for a bit by moving their gas power plants behind the meter — by skipping the grid and connecting them directly to their data centers. But natural gas isn’t an unlimited resource, and if their ambitions grow too big, even the behind-the-meter operations could drive up power prices for everyone. We’ve all seen how that’s played out.

It won’t just be regular households getting upset either. Other industries, including those that remain much more dependent on natural gas and can’t yet turn to renewables, might balk at data centers grabbing so much of the resource. Powering a data center with wind, solar, and batteries is easy. Running a petrochemical plant? Not so much.

Then there’s the weather. One cold winter could change the calculus by driving up demand among households. Wellheads might freeze off, crimping supplies dramatically, as happened in Texas in 2021. When gas runs short, suppliers will face a choice: keep the AI data centers running or let people heat their homes?

By snapping up natural gas supplies and moving behind-the-meter, tech companies can claim that they’re “bringing their own power” and not straining the electrical grid. But in reality, they’re just shifting their use from one grid to another, the natural gas grid. The AI rush has illustrated just how physically constrained the digital world remains. Does it make sense for them to bet big on a finite resource? Tech companies might regret falling for the FOMO.