U.S. data centers projected to guzzle as much natural gas as Germany and Japan by 2035

The explosive growth of artificial intelligence infrastructure is set to reshape American energy consumption. According to a new analysis from BloombergNEF, U.S. data centers could require as much natural gas by 2035 as the entire nations of Germany and Japan consume today—a staggering projection that underscores the infrastructure demands of the AI boom.

The scale of future demand#

BloombergNEF's latest forecast estimates data center natural gas consumption will reach approximately 18 billion cubic feet per day by 2035—nearly double what the same organization predicted just nine months ago. After liquified natural gas (LNG) exports, data centers are expected to become the second-largest driver of natural gas demand growth. Notably, this revised estimate accounts for the fact that not all announced projects will reach completion.

Where the gas will go#

The projected consumption breaks down into two distinct paths. Major tech companies—including Meta, Microsoft, Google, and Amazon—are investing heavily in on-site natural gas power plants that bypass the electrical grid. These dedicated facilities could consume 2.9 to 3.4 billion cubic feet daily by 2035, roughly equivalent to all natural gas used by data centers today.

However, grid-connected data centers will drive substantially larger consumption. The power sector could see an additional 15 billion cubic feet per day of demand from grid-connected data center operations by mid-decade—five times more growth than every other grid-connected industry combined.

Price and market risks#

Current data center expansion plans assume stable natural gas pricing, a condition that may not hold. Analysts worry that the combined pressure from data center growth and rising LNG exports could push prices significantly higher. While large technology companies may absorb price increases, utility customers and ratepayers could face substantially higher bills.