North Carolina's First Gas Well for AI: What's the Plan?

Deep River Data Targets Triassic Basin for Natural Gas

A new player in the energy sector, Deep River Data, is setting its sights on Lee County, North Carolina, for a significant natural gas project. The company, with ties to the crypto world, aims to drill near the Deep River, potentially becoming the first commercial well in the Triassic Basin, a gas-rich area beneath North Carolina and other Eastern states.

Gas for AI, Not Crypto

Contrary to expectations, the gas isn't intended for crypto mining. Instead, the company plans to use it to power a data center for AI workloads. While this requires substantial energy, it's less than what crypto mining demands. Duke Energy estimates that data centers could add nearly 6 gigawatts to North Carolina's energy demand, raising concerns about environmental impact.

Drilling Without Fracking

Deep River Data claims it will avoid fracking, a controversial method that uses toxic chemicals and is known for its destructive environmental effects. Instead, they plan to use conventional drilling. However, even this method poses risks, especially since the well is near the already polluted Deep River. The company assures that it won't draw water from the river, but concerns remain.

Project in Early Stages

The project is still in its early phases, with no approvals or construction underway. Still, residents are voicing concerns and urging the Oil and Gas Commission to scrutinize the plan. There are also fears about the potential influx of more data centers in the area.

Uncertain Future of the Well

The well was initially drilled in 1998, but its viability remains unclear. The company is still assessing whether development is feasible. They claim they want to proceed responsibly, but only time will tell.

Ownership and Industry Ties

The land is owned by Ed Myrick, while Dan Butler, a third-generation oil and gas developer, holds the mineral rights. Despite his family's industry background, the project's environmental and economic implications are still debated.

Crypto Background, AI Focus

The company's leaders have backgrounds in crypto, but they insist this project is about AI and research, not digital currency. Skeptics, however, remain wary of potential environmental harm and long-term consequences.

Jobs vs. Environmental Impact

While the project could bring jobs and economic benefits, the potential cost to the environment is a major concern. The Deep River is already struggling, and additional pollution could worsen conditions. Balancing progress with sustainability is a challenge, and the answers are far from clear.