US Data Centres to Outpace National Gas Consumption by 2035
BloombergNEF projects US data centre gas demand will exceed that of all nations except the top four producers within a decade.
US data centres are projected to consume more natural gas than most sovereign states within ten years, according to a new outlook from BloombergNEF. The firm estimates that gas usage for data centre electricity generation will rise by 15 billion cubic feet per day by 2035, a figure that surpasses current total consumption in every country except China, Russia, Iran, and the United States.
This forecast represents a significant upward revision from BloombergNEF’s December estimate of 6.9 billion cubic feet per day. The surge underscores the deepening reliance of artificial intelligence infrastructure on fossil fuel energy, linking the expansion of Big Tech directly to the output of the legacy oil and gas industry.
Gas dominates new data centre power mix
Natural gas is expected to supply 69% of the power for new grid-connected data facilities due to its low production cost and rapid load-response capabilities. These attributes allow gas plants to adjust output quickly to meet the constant, 24/7 demand of computing infrastructure.
The power sector is now the second-largest driver of US gas demand growth through 2035, trailing only liquefied natural gas exports. Total power-sector gas consumption is forecast to reach 54 billion cubic feet per day by the end of the decade, an increase of 18 billion cubic feet per day from 2025 levels.
LNG exports lead overall demand growth
New liquefied natural gas export terminals on the US Gulf Coast will drive the largest increase in gas demand, adding 21 billion cubic feet per day over the next decade. This outpaces the 18 billion cubic feet per day increase attributed to the power sector, making LNG the primary factor in national consumption growth.
Production gaps threaten supply adequacy
Domestic producers are projected to increase output by 35 billion cubic feet per day between 2025 and 2035. However, this expansion falls short of meeting the combined demand from data centres and LNG exports, leaving an estimated 11 billion cubic feet per day shortfall that the industry must address.
Analysts warn that aggressive drilling of high-quality acreage could deplete reserves, potentially ending the era of cheap Henry Hub gas. While some industry voices dispute the severity of the supply risk, citing ample undeveloped land, the concurrent demand from AI and LNG presents a complex challenge for US gas producers.
