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The United States must utilize its stranded natural gas reserves to compete with China in the AI-driven industrial landscape, according to Shark Tank investor and entrepreneur Kevin O’Leary.
In a May 23, 2025, Instagram post featuring a clip from his Fox Business interview, O’Leary addressed a question about how long it will take to power energy-hungry AI data centers under current regulatory frameworks. Kevin emphasized that without immediate energy solutions, U.S. innovation in AI may stall.
“Nat gas is the solution to keep up with China," he stated.
Shark Tank's Kevin O’Leary says natural gas is critical for U.S. to power AI and compete with China
Data centers face power shortages
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Kevin O’Leary explained that over the past two years, real estate developers and companies seeking to build AI data centers have encountered a major hurdle: a lack of available energy supply.
“We went to every state and into the power authorities and said, hey, can we get a gig of power? And everybody said, no, we just don’t have it,” he said.
The Shark Tank investor underscored that the shortage has led stakeholders to reconsider how to power future data infrastructure. According to O’Leary,
“It’s only been in the last 24 months that everybody that wants to build these data centers, including me… has found out we can’t get power.”
He pointed to stranded natural gas as the most accessible and immediate resource to solve this issue.
Stranded natural gas as the key resource
During the interview, O’Leary identified several regions with abundant stranded gas supplies: North Dakota, West Virginia, Virginia, Mississippi, and Northern Alberta.
“Now we have to work on the most readily available power source, is stranded natural gas,” he explained.
The Shark Tank investor said these locations are appealing due to their natural resources and existing pipeline systems. He also praised Energy Transfer's strong distribution network.
“Mackey who runs that, understands the demand is huge and he’s got some of the biggest distribution in the country,” O’Leary said.
He also noted that the state of Alberta, with substantial reserves, is working with leaders like Doug Burgum to consider integration options with the U.S. energy grid.
Limitations of alternative energy sources
The Shark Tank investor dismissed the viability of nuclear energy in the near term, noting its cost and long timeline.
“Nuclear power that you mentioned, not going to be around for 15 years at least. And it’s not even economic right now,” he stated.
He reiterated that natural gas is the most scalable and immediate option for meeting rising energy demands. On Instagram, he reinforced his stance in the post caption,
“Natural gas is the most scalable solution. It’s abundant, it’s ready, and it’s the only way we keep up with China’s AI ambitions.”
He added that “states that move first, such as North Dakota, West Virginia, and Alberta, are positioning themselves to become the backbone of the next industrial revolution.” O’Leary reflected that a broader conversation about how U.S. policymakers and the private sector can adapt quickly to the demands of advanced technologies.
While long-term solutions such as nuclear are in discussion, Kevin emphasized the need for immediate action,
“Without energy, there is no AI future.”
Watch Shark Tank Fridays at 8 PM ET on ABC or stream the latest episodes on Hulu the following day.
