Data centers powering the AI industry’s expansion are projected to consume more natural gas than Germany and Japan combined by 2035, according to a new report from BloombergNEF. The research firm forecasts AI-driven data centers could consume roughly 18 billion cubic feet of natural gas per day within the next decade, nearly double its estimate from nine months earlier, making data centers the second-strongest driver of natural gas demand growth after LNG exports.
The report noted that companies including Meta, Microsoft, Google and Amazon have each announced onsite natural gas power plants to bypass grid constraints, with these projects expected to consume up to 3.4 billion cubic feet daily by 2035. However, grid-connected data centers are projected to drive far greater demand growth, adding roughly 15 billion cubic feet of daily consumption, five times the growth expected from all other grid-connected sectors combined.
Analysts at Noreva warned that combined pressure from data center growth and rising LNG exports could push natural gas prices sharply higher, potentially straining utility ratepayers even if technology companies can absorb the cost. The International Energy Agency estimates the additional demand would generate roughly 1 million metric tons of extra greenhouse gas emissions daily, equivalent to about 12% of current total US emissions.
