US data centers could consume more natural gas than Germany and Japan combined by 2035
TechCrunch
β’Tue, 15 Sep 2026 18:29:20 +0000
π° What Happened
A new BloombergNEF report projects that by 2035 US data centers could consume about 18 billion cubic feet of natural gas per day, more than Germany and Japan combined and nearly double what the organisation forecast just nine months earlier. Data centers are expected to be the second-strongest driver of US natural gas demand growth after LNG exports. Meta, Microsoft, Google and Amazon have all announced plans for onsite natural gas power plants that bypass the grid, and those projects alone would consume 2.9 billion to 3.4 billion cubic feet per day by 2035, roughly as much as all data centers consume today. The forecast says grid-connected data centers could drive an additional 15 billion cubic feet per day of power-sector gas demand by the middle of the next decade, five times more growth than all other grid-connected sectors combined, which could nudge natural gas prices higher.
π The Backstory
The AI buildout has produced a surge in electricity demand that utilities and transmission planners were not prepared for, and long interconnection queues have pushed operators toward building generation on site. The response has revived interest in natural gas as a relatively fast, dispatchable power source, even as many of the same companies hold public emissions-reduction commitments. BloombergNEF's upward revision within nine months reflects how quickly announced projects have accumulated, though the forecast also assumes that not every announced project will be completed. LNG export terminals have been adding demand on top of that.
π― Why It Matters
If the projection holds, the AI industry becomes a dominant force in US energy markets, affecting domestic gas prices, household power bills and the country's ability to meet emissions targets. Onsite plants that bypass the grid raise questions about stranded assets and about who pays for the shared infrastructure that remains. Regulators and grid operators will have to decide quickly how to plan for loads of a scale that did not exist a few years ago. Communities near new plants and pipelines will face siting and air-quality debates.
A new BloombergNEF report projects that by 2035 US data centers could consume about 18 billion cubic feet of natural gas per day, more than Germany and Japan combined and nearly double what the organisation forecast just nine months earlier. Data centers are expected to be the second-strongest driver of US natural gas demand growth after LNG exports. Meta, Microsoft, Google and Amazon have all announced plans for onsite natural gas power plants that bypass the grid, and those projects alone would consume 2.9 billion to 3.4 billion cubic feet per day by 2035, roughly as much as all data centers consume today. The forecast says grid-connected data centers could drive an additional 15 billion cubic feet per day of power-sector gas demand by the middle of the next decade, five times more growth than all other grid-connected sectors combined, which could nudge natural gas prices higher.
The AI buildout has produced a surge in electricity demand that utilities and transmission planners were not prepared for, and long interconnection queues have pushed operators toward building generation on site. The response has revived interest in natural gas as a relatively fast, dispatchable power source, even as many of the same companies hold public emissions-reduction commitments. BloombergNEF's upward revision within nine months reflects how quickly announced projects have accumulated, though the forecast also assumes that not every announced project will be completed. LNG export terminals have been adding demand on top of that.
If the projection holds, the AI industry becomes a dominant force in US energy markets, affecting domestic gas prices, household power bills and the country's ability to meet emissions targets. Onsite plants that bypass the grid raise questions about stranded assets and about who pays for the shared infrastructure that remains. Regulators and grid operators will have to decide quickly how to plan for loads of a scale that did not exist a few years ago. Communities near new plants and pipelines will face siting and air-quality debates.