The AI race has intensified, leading to projections that by 2035, U.S. data centers will consume more natural gas than Germany and Japan combined. According to a new report from BloombergNEF, data centers are expected to be the second-strongest driver of natural gas demand growth, following LNG exports.

Key Projections

  • Data centers could consume about 18 billion cubic feet per day by 2035.
  • This figure is nearly double the amount predicted just nine months ago.
  • The forecast considers that not all announced data center projects will be completed.

Onsite Power Generation

Recent months have seen a surge in data centers producing power onsite. Major tech companies like Meta, Microsoft, Google, and Amazon have announced plans for new natural gas power plants that will bypass the grid. These projects are expected to consume between 2.9 billion to 3.4 billion cubic feet per day by 2035, which is roughly equivalent to the total current consumption of all data centers, including natural gas used for grid power generation.