Elon Musk Is Quietly Turning to This Fossil Fuel to Power His AI Ambitions.

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Reuben Gregg Brewer, The Motley Fool

Sat, July 25, 2026 astatine 5:35 PM CDT 4 min read

Elon Musk pushes the envelope, which is portion of being a visionary and institution founder. However, his latest determination successful the artificial quality abstraction could person precise worldly implications for the vigor sector. Here's wherefore Elon Musk's determination to physique a earthy state powerfulness works could beryllium a large payment for midstream businesses similar Enterprise Products Partners (NYSE: EPD), Enbridge (NYSE: ENB), and Kinder Morgan (NYSE: KMI).

Elon Musk takes matters into his ain hands

Artificial quality (AI) is truly conscionable a fancy machine program. AI needs powerfulness to work. But it takes clip to get a grid connection. Moreover, connecting to the powerfulness grid affects different customers who usage it. Higher energy prices for each users are not thing that regulators oregon customers privation to see, but that is precisely what has been happening.

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Tesla's (NASDAQ: TSLA) caller net study highlights however overmuch the institution is spending connected AI and AI-related technology, specified arsenic self-driving cars and autonomous robots. Space Exploration Corporation (NASDAQ: SPCX) is besides spending heavy connected AI, arsenic its prospectus made clear. The afloat grade of the company's plans volition apt beryllium a cardinal absorption of its upcoming net release, its archetypal arsenic a nationalist company.

However, Elon Musk is intelligibly making large moves successful the AI space. That includes gathering 2 monolithic AI information centers successful Tennessee called Colossus I and II. Musk likes to marque bold statements, but the size of the information centers justifies the names. To assistance powerfulness them, helium purchased earthy state turbines and built an off-grid earthy state powerfulness works successful Mississippi. Nearby residents and regulators aren't blessed and are suing, but it appears that the U.S. authorities is backing Musk.

Midstream companies triumph either mode

The important concern communicative present isn't truly what Elon Musk is doing. The communicative is wherefore helium is doing it. Natural state is simply a reliable base-load powerfulness source. Natural state powerfulness plants tin beryllium built comparatively quickly. It is comparatively businesslike power, arsenic well. As utilities and non-utilities look to nutrient much power, earthy state is apt to spot accrued demand.

Demand is the astir important origin driving the fiscal results of midstream companies that transport earthy gas, specified arsenic Enterprise, Enbridge, and Kinder Morgan. These businesses ain the vigor infrastructure that helps determination earthy gas, charging customers fees for the usage of those assets. The terms of the commodities moving done their vigor systems is little important than the volume. More request means much volume.

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