The frenzied acceleration of the global artificial intelligence race is placing unprecedented demands on global power infrastructure. By 2035, U.S. data centers are projected to consume more natural gas than Germany and Japan combined, according to a recent report from BloombergNEF.
Over the next decade, data facilities are expected to become the second-strongest driver of natural gas demand growth in the United States, surpassed only by liquefied natural gas (LNG) exports. This rapidly expanding energy footprint highlights the critical infrastructure shifts underway to sustain ongoing AI buildouts.
1. The Record-Breaking 18 Billion Cubic Feet Forecast
According to research from BloombergNEF, data facilities in the United States could consume approximately 18 billion cubic feet of natural gas per day by 2035. This figure is nearly double the forecast released by the organization just nine months prior, taking into account that not all announced data center projects will ultimately be completed.
2. Tech Giants Pivoting to Onsite Natural Gas Plants
To avoid electric grid constraints, major technology corporations including Meta, Microsoft, Google, and Amazon have announced plans to construct new natural gas power plants directly on-site. By bypassing the primary power grid, these dedicated facilities aim to secure uninterrupted operations.
Key Callout: Onsite Power Scale
Onsite-powered data centers alone are projected to consume between 2.9 billion and 3.4 billion cubic feet of natural gas per day by 2035. That volume roughly equals the total natural gas consumed by all U.S. data centers today, including grid-generated electricity.
3. Grid-Connected Demand Dominating Power Growth
Despite headlines surrounding onsite power generation, grid-connected facilities will represent the vast majority of demand expansion. By the middle of the next decade, grid-tied data centers are expected to drive an additional 15 billion cubic feet per day of natural gas consumption within the power sector.
Through 2035, this represents five times more demand growth from grid-connected data centers than from all other grid-connected sectors combined.
4. Economic Risks and Climate Impacts
This immense surge in demand could alter fuel economics and environmental metrics across the nation:
- Price Dynamics: Analysts at Noreva indicate that the combination of expanding data center needs and rising LNG exports could push natural gas prices higher, potentially affecting everyday utility ratepayers.
- Emissions Footprint: Citing IEA data, burning one cubic foot of natural gas releases 60 grams of carbon dioxide equivalent (including extraction, processing, and distribution).
- Overall Pollution: The extra demand from data centers is estimated to add 1 million metric tons of greenhouse gas emissions daily—representing approximately 12% of total current U.S. greenhouse gas emissions.
Conclusion
As technology leaders expand infrastructure to meet artificial intelligence workloads, natural gas is positioning itself as a central fuel source for future data centers. Balancing this scaling compute demand with grid stability, economic costs, and environmental targets remains one of the defining infrastructure challenges of the coming decade.