BloombergNEF reported that U.S. data centers are expected to consume more natural gas than Germany and Japan combined by 2035. The report highlights that data centers will be the second-largest driver of natural gas demand growth after LNG exports in the next decade.
The organization predicts that data centers could consume about 18 billion cubic feet per day by 2035, nearly double the amount forecasted nine months ago. This new forecast accounts for the fact that not all announced data center projects will be completed.
Data centers producing power onsite have gained attention, with Meta, Microsoft, Google, and Amazon planning new natural gas power plants that bypass the grid. These projects could consume 2.9 to 3.4 billion cubic feet per day by 2035, matching current data center consumption levels.
"Projects such as these will consume 2.9 billion to 3.4 billion cubic feet per day by 2035," said BloombergNEF. That’s about as much as all data centers consume today, including natural gas used to generate power for the grid.
However, onsite-powered data centers may represent only a fraction of overall demand growth. By the middle of the next decade, grid-connected data centers are projected to drive an additional 15 billion cubic feet per day of natural gas consumption by the power sector.
If this demand growth materializes, it could push natural gas prices higher. Analysts at Noreva suggest that the combined impact of the data center boom and rising LNG exports might cause prices to soar, potentially affecting utility ratepayers.
Source: techcrunch
