U.S. data centers could consume about 18 billion cubic feet of natural gas each day by 2035, potentially exceeding the combined consumption of Germany and Japan, according to a new BloombergNEF forecast. 

The projection highlights the growing energy requirements of artificial intelligence and the rapid expansion of data center infrastructure across the country.

BloombergNEF expects data centers to become the second largest source of growth in natural gas demand over the next decade, behind liquefied natural gas exports.

The latest forecast is nearly twice the organization’s projection from nine months earlier and takes into account the possibility that some announced data center projects may not be completed.

Several major technology companies, including Meta, Microsoft, Google and Amazon, have announced plans involving natural gas power generation to support data center operations. 

Facilities using onsite power could consume between 2.9 billion and 3.4 billion cubic feet of natural gas per day by 2035.

However, BloombergNEF estimates that grid connected data centers could drive much larger additional demand through the electricity sector.

The projected increase could have implications for energy prices and greenhouse gas emissions. 

Analysts have warned that rising demand from data centers, combined with growing LNG exports, could place upward pressure on natural gas prices. 

The expansion has also raised environmental concerns because burning natural gas produces carbon emissions, adding to the broader debate over the energy requirements and climate impact of the artificial intelligence industry.

Source: TechCrunch