What you need to know about energy pricing as market complexities grow

Because energy consumption is one of the largest operating expenses for a data center or manufacturing operation, it’s important that owners and operators understand the potential for price volatility here in the United States. Natural gas and electric rates in the U.S. were stable for most of 2018, as higher demand for natural gas due to greater exports to Mexico and increased liquefied natural gas (LNG) shipments were offset by greater production of natural gas. As a result, supply and demand was kept in balance and prices remained in a tight band — that is, until November 2018, when prices spiked to a four-year high.