U.S. Data Centers’ Natural Gas Demand Could Surpass Germany and Japan Combined by 2035

U.S. data centers are projected to consume more natural gas than Germany and Japan combined by 2035, according to TechCrunch’s report on a new BloombergNEF forecast. The facilities could use about 18 billion cubic feet per day, nearly double what BloombergNEF predicted nine months earlier. Over the next decade, data centers are expected to be the second-strongest source of natural gas demand growth after LNG exports. The forecast also accounts for the likelihood that not every announced data center project will actually be completed.

Some of the highest-profile plans involve data centers producing power onsite with new natural gas plants that bypass the grid. TechCrunch cites announced plans involving Meta, Microsoft, Google, and Amazon, with these onsite-powered projects expected to consume 2.9 billion to 3.4 billion cubic feet per day by 2035. That is roughly comparable to all data centers’ current natural gas use, including gas used to generate grid power. Still, BloombergNEF’s forecast indicates onsite power would be only a fraction of total demand growth.

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 the middle of the next decade. TechCrunch notes that this would be five times more demand growth through 2035 than from all other grid-connected sectors combined. The key takeaway for energy planners is that AI infrastructure growth is not just a data center siting issue; it is a grid planning and fuel supply issue. Utilities, regulators, and large tech buyers will need to account for how new loads affect generation, transmission, and local ratepayer exposure.

If the projected demand growth materializes, TechCrunch reports it could push natural gas prices higher. The article notes that much of today’s data center buildout assumes stable natural gas prices, while analysts at Noreva have warned that data center growth plus rising LNG exports could cause prices to climb. Even if large tech companies can absorb higher costs, utility ratepayers may face more pressure. The climate impact is also significant: using IEA emissions figures cited by TechCrunch, additional data center demand could generate 1 million metric tons more greenhouse gas pollution daily, about 12% of current total U.S. greenhouse gas emissions.