US Data Centers Set to Consume More Natural Gas Than Most Countries by 2035

US data centers are on track to consume more natural gas than nearly every nation within a decade, according to a BloombergNEF outlook. Gas used to generate electricity for data centers is expected to increase by 15 billion cubic feet per day by 2035, even if some planned projects are never built. That would exceed current consumption in every country except China, Russia, Iran, and the United States. The estimate is more than double BloombergNEF’s previous forecast of 6.9 billion cubic feet per day issued in December. Natural gas is expected to supply 69% of the power needed by new grid-connected facilities. Abundant US production, relatively low costs, and gas plants’ ability to adjust output quickly make the fuel attractive to data centers that operate around the clock. The AI buildout is projected to become the second-largest source of US gas-demand growth through 2035, behind new liquefied natural gas export terminals on the Gulf Coast. Power-sector gas use is expected to reach 54 billion cubic feet per day by 2035, up from 36 billion in 2025, while LNG exports add another 21 billion cubic feet per day of demand. BloombergNEF says the forecast has wide margins of uncertainty b...