U.S. Data Centers on Track to Outpace Germany and Japan in Natural Gas Use by 2035
The rapid expansion of artificial intelligence is driving U.S. data centers toward consuming more natural gas than Germany and Japan combined by 2035, according to a new report from BloombergNEF. The facilities are expected to use about 18 billion cubic feet per day, nearly double what the organization forecast just nine months ago. That makes data centers the second-strongest driver of natural gas demand growth over the next decade, behind only LNG exports.
Tech giants including Meta, Microsoft, Google, and Amazon are announcing new natural gas power plants to serve data centers off the grid. These onsite-powered facilities are projected to consume 2.9 billion to 3.4 billion cubic feet per day by 2035, roughly as much as all data centers use today. But grid-connected data centers loom even larger, driving an additional 15 billion cubic feet per day of consumption by the power sector, five times more demand growth than all other grid-connected sectors combined.
The surge in demand could push natural gas prices higher, analysts at Noreva warn, especially combined with rising LNG exports, potentially straining utility ratepayers even if tech companies can absorb the costs. The climate toll is also significant: each cubic foot of natural gas burned releases the equivalent of 60 grams of carbon dioxide, per the IEA. The added data center demand is expected to generate 1 million additional metric tons of greenhouse gas pollution daily, about 12% of total U.S. emissions today.