AI data centers could make U.S. the world's fifth-largest natural gas user by 2035
Bloomberg projections indicate that U.S. data centers will consume up to 15 billion cubic feet of natural gas daily by 2035, a 117% increase from earlier forecasts. This surge is driven by reliance on gas turbine generators for electricity as AI compute demand grows. The U.S. would rank fifth globally in natural gas consumption, behind only China, Russia, Iran, and the U.S. itself (excluding data centers).
The revised Bloomberg projection represents a sharp upward adjustment, with daily consumption estimates climbing from 6.9 billion to 15 billion cubic feet. This increase reflects data centers' growing dependence on gas turbine generators as grid power becomes harder to secure, with some projects facing lengthy waits for new power infrastructure to come online.
The trend has drawn significant investment, including Elon Musk's billion-dollar acquisition of a portable turbine leasing firm and SpaceX's plans to manufacture turbine blades in-house. While alternatives such as small modular nuclear reactors are under development, they remain years from commercial viability, leaving natural gas as the immediate solution for meeting surging AI compute demand.
The projected rise in natural gas consumption could affect communities near data centers, where emissions of nitrogen oxide, particulate matter, and formaldehyde may increase substantially. Local residents could face air quality concerns, while the broader energy landscape may see fossil fuel reliance persist longer than previously expected. The delayed arrival of cleaner alternatives like nuclear microreactors means this dependence could continue for years, potentially shaping public health outcomes and environmental targets in regions hosting these facilities.