Louisiana Turns $3 of Natural Gas Into $300 of AI Compute
aakashgupta · x · 2026-11-03
Aakash Gupta's long-form breakdown of Louisiana's compute economics: burning $3 of natural gas in the right power plant keeps an Nvidia H100 running for 100 hours, and with AI companies paying roughly $3/hour to rent one, that $3 of gas converts into about $300 of compute revenue.
This math explains why SpaceX, Meta, Amazon and Hyundai are all pouring money into the same state simultaneously.
He also traces the pricing source: Henry Hub, the national natural gas benchmark, sits near Erath, Louisiana, where eight pipelines converge—giving the state a structural energy cost advantage.
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