U.S. data centers are projected to consume 18 billion cubic feet (Bcf/d) of natural gas per day by 2035, a volume that would exceed the current combined demand of Germany and Japan. According to updated forecasts from BloombergNEF (BNEF), this trajectory would position the American data center industry as the fifth-largest consumer of natural gas globally, trailing only the total consumption of China, Russia, Iran, and the United States itself.
The 18 Bcf/d projection represents a significant escalation in expected demand, nearly doubling the 6.9 Bcf/d estimate previously issued by BNEF. This revision is driven by the infrastructure requirements of the artificial intelligence boom and the role natural gas plays in meeting high-density power needs that the existing electrical grid cannot always support.
The Scale of Consumption
Natural gas is expected to supply 69% of the electricity required by new grid-connected data centers in the U.S. Of the total 18 Bcf/d projected for 2035, approximately 15 Bcf/d will likely be consumed by the power sector to meet these grid-connected demands. The remaining portion, estimated between 2.9 and 3.4 Bcf/d, is expected to come from on-site generation facilities.
On-site facilities are being built to bypass grid bottlenecks that often delay new facility launches. These on-site solutions allow companies to secure reliable power independently of utility wait times.
Infrastructure and Environmental Impact
The reliance on fossil fuels to power AI infrastructure presents a challenge to the net-zero climate targets maintained by many large technology firms. BNEF analysis indicates that the projected surge in data center gas demand could generate an additional 1 million metric tons of greenhouse gas emissions every day. This increase is equivalent to roughly 12% of current total U.S. emissions.
The scale of this demand may also have economic consequences for the broader public. As technology giants compete for fuel supplies, the increased demand could drive up natural gas and electricity prices for residential households. This shift in the energy landscape marks a transition where industrial technology needs are increasingly competing with traditional utility requirements for the domestic gas supply.
