US Data Centres Could Surpass Germany and Japan in Natural Gas Use by 2035

US data centres are projected to become a major source of natural gas demand over the next decade, with consumption potentially exceeding Germany and Japan combined by 2035 as artificial intelligence infrastructure expands.

According to BloombergNEF, US data centres could consume about 18 billion cubic feet of natural gas per day by 2035. The estimate is nearly twice the organisation’s previous forecast and assumes some announced data centre projects may not be completed.

Data centres emerge as a major gas demand driver

Data centres are expected to become the second-largest contributor to natural gas demand growth after LNG exports. Much of the increase is linked to rising electricity needs from AI systems and large-scale computing infrastructure.

Technology companies including Meta, Microsoft, Google, and Amazon have announced plans involving natural gas-powered facilities that can provide electricity directly to data centres. Recent projects and supply agreements, including those involving Microsoft’s energy partnerships, show a growing focus on securing reliable power sources.

However, onsite power generation is expected to represent only part of the overall increase. BloombergNEF estimates these facilities could consume between 2.9 billion and 3.4 billion cubic feet of natural gas daily by 2035, roughly matching current total data centre-related gas use.

Grid demand and emissions concerns

Grid-connected data centres are expected to drive the largest increase. BloombergNEF projects these facilities could add about 15 billion cubic feet per day of natural gas demand from the power sector by 2035.

The rapid growth in gas demand has raised questions about future energy costs. Analysts cited by Natural Gas Intelligence have examined the challenges of estimating how much natural gas data centres will ultimately require.

The expansion also carries environmental concerns. The International Energy Agency has reported that natural gas emissions include impacts from production, processing, and distribution.

Based on projected demand growth, additional natural gas use from data centres could add about 1 million metric tons of greenhouse gas emissions per day. Sources include Our World, which tracks current US emissions data.

As AI infrastructure continues to expand, data centre operators, energy companies, and utilities face growing challenges in securing enough power while managing costs and emissions.