AI Data Centers Could Push U.S. Gas Use Past Germany and Japan by 2035
BloombergNEF forecasts U.S. data centers will burn 18 billion cubic feet of gas daily by 2035, threatening higher prices and 1 million tons of daily emissions.
Summary
On September 15, 2026, BloombergNEF projected U.S. data centers will consume about 18 billion cubic feet of natural gas daily by 2035, more than Germany and Japan combined and nearly twice its estimate from nine months earlier. The forecast accounts for announced projects that may never be completed. Data centers are expected to become the second largest driver of gas demand growth over the next decade, behind LNG exports.
Meta, Microsoft, Google and Amazon have announced onsite gas plants that bypass the grid. Such projects could consume 2.9 billion to 3.4 billion cubic feet daily by 2035, roughly today's total data center demand, including gas burned for grid electricity, but remain a fraction of future growth. Grid connected facilities could add 15 billion cubic feet daily, five times the growth from all other connected sectors combined. Noreva warns data centers and LNG exports could end the stable prices underpinning construction, burdening utility ratepayers even if technology companies absorb higher costs. The IEA estimates each cubic foot produces 60 grams of carbon dioxide equivalent across extraction, processing, distribution and combustion. Added data center demand could generate 1 million metric tons of greenhouse gases daily, about 12% of current U.S. emissions.
Positives
- BloombergNEF's forecast accounts for announced data center projects that may not be completed.
- Meta, Microsoft, Google and Amazon plan onsite natural gas generation that will bypass the power grid.
- Stable natural gas prices in recent years have supported the current data center construction boom.
- Technology companies' balance sheets may be able to absorb a substantial increase in natural gas prices.
Risks & concerns
- U.S. data centers could consume 18 billion cubic feet of gas daily by 2035, more than Germany and Japan combined.
- Grid connected data centers could add five times more gas demand than every other connected sector combined through 2035.
- Noreva warns rising data center consumption and LNG exports could cause natural gas prices to soar.
- Utility ratepayers may be unable to absorb the higher energy costs that technology companies can withstand.
- Additional data center demand could produce 1 million metric tons of greenhouse gas pollution daily, equal to 12% of current U.S. emissions.
