Report: US data centers may use more natural gas than Germany and Japan by 2035

In short: A new forecast says fast growth in US data centers could push their natural gas use above Germany and Japan combined by 2035.

What's going on

A report from BloombergNEF, cited by TechCrunch, projects that US data centers could consume about 18 billion cubic feet of natural gas per day by 2035. Data centers are large buildings filled with computers that power apps, websites, and AI tools, like a giant server room for the internet.

That estimate is almost double what BloombergNEF predicted just nine months earlier. The report also assumes that not every planned data center will actually get built.

Part of the increase comes from some companies planning data centers that generate electricity on site using new natural gas power plants. TechCrunch notes plans tied to Meta, Microsoft, Google, and Amazon. BloombergNEF estimates these on site projects could use 2.9 to 3.4 billion cubic feet per day by 2035, which is roughly as much as all data centers use today.

Most of the added demand is expected to come indirectly, from data centers that stay connected to the normal power grid. BloombergNEF projects they could drive an additional 15 billion cubic feet per day of natural gas use by power companies, as utilities burn gas to make more electricity.

What to watch

If this level of demand shows up, analysts say natural gas prices could rise. That could affect electricity bills for households, since utilities may pass higher fuel costs on to customers. The climate impact is also a concern, since burning natural gas releases carbon dioxide, and TechCrunch reports the extra demand could add about 1 million metric tons of greenhouse gas pollution per day.

Source: TechCrunch AI