AI Data Center Boom to Boost US Gas Use by 15 bcf/d by 2035, BNEF Forecasts

BloombergNEF has released a new outlook projecting that natural gas consumption by US data centers will surge by 15 billion cubic feet per day (bcf/d) over the next decade, driven by the AI boom. That increase exceeds the current total gas consumption of any country except China, Russia, Iran and the US itself.

According to the report, gas will supply 69% of the electricity for newly connected data centers. Abundant domestic gas resources, low production costs, and the ability of gas-fired plants to quickly adjust output to match 24/7 data center operations make gas a key power source. The report expects US power-sector gas consumption to rise from about 36 bcf/d in 2025 to 54 bcf/d by 2035, while LNG export-related gas demand will add another 21 bcf/d.

Henry Eaton, lead author and BNEF gas market analyst, cautioned that uncertainty over AI industry development over the next decade leaves large error bands in both directions. On the supply side, US gas production is projected to increase by 35 bcf/d between 2025 and 2035, but an additional 11 bcf/d would be needed to meet forecast demand, or prices could face upward pressure.