US Data Centers Could Consume More Natural Gas Than Germany and Japan Combined by 2035
Driven by the artificial intelligence boom, natural gas consumption by US data centers is expected to increase at a record pace over the coming decade.
Rapid growth in the artificial intelligence sector could elevate the energy demand of US data centers to a level that surpasses the combined natural gas consumption of Germany and Japan.
Artificial Intelligence Boom and Rising Demand
The intense energy need brought on by the artificial intelligence race is driving the amount of natural gas that US data centers will consume in the future to unprecedented proportions. According to a new report by BloombergNEF, data centers in the country could consume more natural gas than Germany and Japan combined by the year 2035.
The Second Largest Driver of the Coming Decade
Over the next decade, data centers are expected to be the second strongest driver of growth in natural gas demand, following liquefied natural gas (LNG) exports. It is calculated that the facilities could consume approximately 18 billion cubic feet per day.
Off-Grid Energy Solutions
Tech giants such as Meta, Microsoft, Google, and Amazon have announced new natural gas power plant plans to bypass the grid and generate electricity on their own sites. Such projects are expected to consume significant amounts of natural gas daily by 2035.
Share of Grid-Connected Facilities
It is projected that grid-connected data centers will trigger an additional 15 billion cubic feet per day of natural gas consumption through the electricity sector. This situation points to a demand increase much larger than the total of all other grid-connected sectors combined.
Price Increases and Impact on Consumers
It is stated that this anticipated massive increase in demand could drive natural gas prices upward. Noreva analysts indicate that even if technology companies can absorb this increase, ordinary electricity subscribers may not be able to cope with this cost.
Environmental Impacts and Carbon Emissions
According to International Energy Agency data, the burning of natural gas and related processes lead to significant carbon dioxide emissions. It is estimated that this additional demand originating from data centers will generate millions of tons of extra greenhouse gas pollution on a daily basis.