Key facts
- US data centers are projected to consume more natural gas than Germany and Japan combined by 2035.
- Data centers are expected to be the second-strongest driver of natural gas demand growth after LNG exports over the next decade.
- By 2035, US data centers could consume about 18 billion cubic feet of natural gas per day, nearly double previous predictions.
- On-site power plants for data centers could consume 2.9 to 3.4 billion cubic feet per day by 2035.
- Grid-connected data centers are predicted to drive an additional 15 billion cubic feet per day of natural gas consumption by the power sector by 2035.
- The additional demand from data centers will generate 1 million metric tons more greenhouse gas pollution daily.
US data centers are poised to become a major driver of natural gas demand, potentially consuming more than Germany and Japan combined by 2035, according to a new report from BloombergNEF. This projection represents a near doubling of previous estimates within the last nine months, reflecting the accelerating pace of AI development and its associated infrastructure needs.
While not all announced data center projects are expected to be completed, the overall demand for natural gas is significant. On-site power generation for data centers, with companies like Meta, Microsoft, Google, and Amazon planning new natural gas power plants, could account for 2.9 to 3.4 billion cubic feet per day by 2035. This is comparable to the total natural gas consumption of all data centers today, including those powering the grid.
However, the primary growth is anticipated from grid-connected data centers, which are predicted to drive an additional 15 billion cubic feet per day of natural gas consumption by the power sector. This figure is five times greater than the projected demand growth from all other grid-connected sectors combined through 2035.
The surge in demand could lead to higher natural gas prices, a prospect that analysts at Noreva believe may be underestimated, given the combined pressure from data center buildouts and rising LNG exports. This potential price increase could impact utility ratepayers.
Beyond economic implications, the increased natural gas consumption carries a significant climate impact. The burning of natural gas releases carbon dioxide, and the projected additional demand from data centers is expected to generate 1 million metric tons more greenhouse gas pollution daily, representing about 12% of current total US greenhouse gas emissions.