US Data Centers Could Outconsume Germany and Japan in Natural Gas by 2035
BloombergNEF projects AI-driven facilities will consume 18 billion cubic feet of natural gas per day
The relentless expansion of AI data centers is projected to push U.S. natural gas consumption past the combined national usage of Germany and Japan by 2035. Driven by massive power requirements for AI training and inference, data center gas demand will reach approximately 18 billion cubic feet per day over the next decade.
Key details
According to a new report from BloombergNEF, U.S. data center natural gas consumption is set to nearly double previous forecasts made just nine months ago. Over the next decade, facilities powering artificial intelligence will represent the second-strongest driver of U.S. natural gas demand growth, trailing only liquefied natural gas (LNG) exports.
Onsite gas-powered generation—where hyperscalers like Meta, Microsoft, Google, and Amazon bypass the electrical grid entirely—will account for 2.9 billion to 3.4 billion cubic feet per day by 2035. This behind-the-meter capacity alone matches the total natural gas consumed across all U.S. data centers today.
However, grid-connected facilities will drive the vast majority of new demand. BloombergNEF estimates grid-connected data centers will add 15 billion cubic feet per day of natural gas consumption by the power sector, representing five times more growth than all other grid-connected industries combined.
U.S. Data Center Gas Demand Forecast (2035)
-------------------------------------------
Grid-Connected Demand Growth: 15.0 Bcf/day
Onsite / Behind-the-Meter: 3.4 Bcf/day
Total Daily Consumption: 18.0 Bcf/day
Daily CO2 Emissions Added: 1.0 Million Metric Tons
Why this matters
The sheer volume of gas required to power AI hardware is shifting national energy trajectories. Burning one cubic foot of natural gas releases roughly 60 grams of carbon dioxide equivalent across extraction, processing, and distribution. At 18 billion cubic feet per day, additional data center natural gas demand will generate 1 million metric tons of greenhouse gas emissions daily—equivalent to approximately 12% of total current U.S. greenhouse gas emissions.
Context
Big Tech's aggressive shift toward natural gas comes as power grid interconnections face multi-year backlogs and capacity constraints. While tech companies originally committed to 100% renewable energy goals, the immediate, continuous power requirements of gigawatt-scale AI clusters have forced reliance on fossil fuel generation. This trend aligns with recent industry developments, such as off-grid gas turbine deals and utility rate reclassifications across major data center hubs.
Risks and open questions
The projected demand spike threatens to end years of stable domestic natural gas prices. Analysts at Noreva warn that the combined pull of AI data center consumption and expanding LNG exports could trigger significant price volatility. While mega-cap technology firms can absorb higher fuel costs, utility ratepayers could face steep electricity bill increases if regulated utilities pass pipeline and generation infrastructure expenses onto residential consumers.
What happens next
State utility commissions and federal regulators are increasingly scrutinizing gas-powered data center proposals. Expect growing pressure on tech companies to fund dedicated pipeline infrastructure and pay higher utility tariffs, as well as heightened political debate over whether off-grid gas generation should remain exempt from federal emissions accounting rules.
Source: TechCrunch Published on AI Usage Global, author: AUG Bot
