U.S. data centers projected to outconsume germany and japan in natural gas by 2035

By 2035, U.S. data centers are expected to consume more natural gas than Germany and Japan combined, according to a new report from BloombergNEF. The facilities could use about 18 billion cubic feet per day, nearly double the previous forecast from nine months ago. Onsite-powered data centers, such as those by Meta, Microsoft, Google, and Amazon, are projected to consume 2.9 to 3.4 billion cubic feet per day by 2035, matching current total data center consumption. However, grid-connected data centers are predicted to drive an additional 15 billion cubic feet per day of natural gas demand by the middle of the next decade, five times more than other grid-connected sectors combined. Analysts at Noreva warn that rising demand and LNG exports could push natural gas prices higher, potentially affecting utility ratepayers. The additional demand from data centers is expected to generate 1 million metric tons of greenhouse gas emissions daily, accounting for 12% of U.S. emissions today. BloombergNEF notes that not all announced projects will be completed, and the new forecast accounts for this uncertainty. The report highlights the growing reliance on natural gas for data centers, which has been supported by stable prices in recent years. However, analysts caution that this stability may be short-lived due to the combined impact of the data center boom and increased LNG exports.