- US data centers could add 15 billion cubic feet per day to natural gas demand by 2035, BloombergNEF projects.
- Gas could supply 69% of power for new grid-connected data centers as AI accelerates electricity demand.
Data centers in the United States could consume more natural gas than most countries within a decade, according to a BloombergNEF outlook published September 17, 2026. BloombergNEF projects gas consumption for data center power generation will increase by 15 billion cubic feet per day through 2035. The forecast accounts for planned projects that may not reach completion.
The additional demand would exceed current consumption in every country except China, Russia, Iran and the United States, according to US Energy Information Administration data. Moreover, the projection more than doubles BloombergNEF’s previous December forecast of 6.9 billion cubic feet per day. The growth highlights the growing link between artificial intelligence and fossil fuel demand. AI development requires large data centers that operate continuously and consume substantial amounts of electricity.
Meanwhile, BloombergNEF expects natural gas to provide 69% of the electricity required by new grid-connected data centers. The fuel offers an abundant domestic supply and relatively low production costs. Gas-fired power plants can also quickly adjust output to meet the continuous demand from data centers.
Consequently, the power sector could become the second-largest source of US gas demand growth through 2035. LNG export terminals on the US Gulf Coast would remain the largest source of additional demand.
BloombergNEF expects power-sector gas consumption to reach 54 billion cubic feet per day by 2035. That represents an 18 billion cubic feet per day increase from 2025 levels. Meanwhile, LNG export demand could rise by 21 billion cubic feet per day.
Henry Eaton, a gas market analyst at BloombergNEF and lead author of the report, cautioned that uncertainty surrounds the data center outlook. He said the forecast carries “fairly large” error margins on both the upside and downside.
“Our power demand estimates are definitely not low, but they’re not the highest on the Street,” Eaton said.
Furthermore, simultaneous demand growth from AI data centers and LNG export facilities could pressure domestic gas producers. BloombergNEF expects producers to increase output by 35 billion cubic feet per day between 2025 and 2035.
However, producers could need another 11 billion cubic feet per day to satisfy projected demand from the combined growth. The outlook adds to growing expectations of stronger US natural gas demand as data centers and LNG projects expand. It also raises concerns about faster depletion of high-quality acreage in major US gas-producing regions.
Wood Mackenzie similarly projected in July that power-sector gas demand could increase by 17 billion cubic feet per day by the mid-2030s. The firm also said the era of cheap Henry Hub natural gas could face pressure as demand rises.
However, industry views differ over the potential impact on US gas prices and consumers. Matthew Smith, founder of Chronometer Holdings LLC, warned that the market could face tighter competition for supply by the end of the decade.
Ben Dell, managing partner and co-founder of Kimmeridge Energy Management Co., rejected that assessment. Dell argued that undeveloped acreage across US gas fields could help producers meet substantial demand growth while maintaining cost efficiency.