Technology and Science15 September, 20263 min read
U.S. Data Centers Projected To Consume More Natural Gas Than Most Countries By 2035
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BloombergNEF projects U.S. data centers will use about 15 bcf/d of gas by 2035. By 2035, U.S. data centers would consume more natural gas than most countries.
Gas Demand Rises for AI
U.S. data centers are projected to consume more natural gas than most countries within a decade, with BloombergNEF forecasting gas consumption for electricity generation to grow by 15 billion cubic feet per day in the ten years to 2035. The Star says the forecast would exceed current gas consumption in every country except China, Russia, Iran and the U.S. itself, and it also notes that the 15 billion cubic feet per day figure is more than double BloombergNEF’s previous forecast of 6.9 billion cubic feet per day. BloombergNEF’s outlook ties the increase to the ability of gas power plants to ramp up and down for 24/7 data centers, and it projects gas will supply 69% of the power needed by new grid-connected facilities.
The Star further says power-sector gas consumption is expected to rise to 54 billion cubic feet per day by 2035, up by 18 billion cubic feet per day in 2025, while gas demand from LNG exports rises by 21 billion cubic feet per day. Henry Eaton, a BloombergNEF gas market analyst and lead author, said, "Our power demand estimates are definitely not low, but they're not the highest on the Street."
Communities Push Back
Across the United States, residents are challenging promises that new data-center infrastructure will deliver prosperity, with concerns focused on strain on the environment, power grid, and water resources.
In Philadelphia’s Grays Ferry neighborhood, activist Shomar Pitts, whose area is described as having painful memories of industrial pollution, is calling for a moratorium on data center construction in Philadelphia.
Pitts said, "We don’t want data centers. We don’t need the pollution and noise, and we know they won’t bring more jobs."
The article also describes a calculation used at a rally that participants were given showing that burning one cubic foot of gas produces the equivalent of 60 grams of carbon dioxide.
Clean Air Council attorney Annie Fox said, "Additional demand from data centers could increase daily greenhouse gas emissions by 1 million metric tons."
Policy, Prices, and Power
The forecast’s implications extend beyond electricity generation, because the combined needs of AI data centers and LNG export terminals are described as posing "a complex challenge for domestic gas producers" in meeting demand through 2035. The Star says producers are projected to raise gas output by 35 billion cubic feet per day between 2025 and 2035 but will need to produce an additional 11 billion cubic feet per day to meet forecasted demand. Wood Mackenzie, cited in The Star, declared in July that "the decade of cheap Henry Hub gas is coming to an end," referring to the pipeline trading hub in Louisiana that sets the U.S. benchmark for natural gas.
TechCrunch adds that by 2035, the facilities could consume about 18 billion cubic feet per day, nearly double what BloombergNEF predicted nine months ago, and it says the combined impact of the data center boom and rising LNG exports could cause prices to soar. TechCrunch also frames the climate stakes by stating, "Burning one cubic foot of natural gas releases the equivalent of 60 grams of carbon dioxide into the atmosphere," and it says the additional demand from data centers will generate 1 million metric tons more greenhouse gas pollution daily.