Observed Signal · Sep 15, 2026 · Report Release · Source: techcrunch · Impact: 2/5 · Sentiment: Negative
US data centers to consume more natural gas than Germany and Japan combined
A new report from BloombergNEF projects that by 2035, U.S. data centers will consume about 18 billion cubic feet of natural gas per day, nearly double the previous forecast and more than Germany and Japan combined. This demand is driven by both onsite power plants and grid-connected data centers, with the latter expected to add 15 billion cubic feet per day by 2035. The surge could raise natural gas prices and increase greenhouse gas emissions by 1 million metric tons daily. Tech giants like Meta, Microsoft, Google, and Amazon are building natural gas plants to bypass the grid, contributing to the demand. Analysts at Noreva warn that reliance on stable gas prices may be misguided, potentially impacting utility ratepayers.
Relevant to infrastructure and energy costs but not directly an AdTech/MarTech story.
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Key Takeaways & Evidence Grounding
- BloombergNEF forecasts U.S. data centers will consume 18 billion cubic feet of natural gas per day by 2035.
- Onsite data center power plants will consume 2.9-3.4 billion cubic feet per day by 2035.
- Grid-connected data centers will drive an additional 15 billion cubic feet per day of natural gas consumption by 2035.
- The additional demand will generate 1 million metric tons more greenhouse gas pollution daily, about 12% of current U.S. emissions.
- Meta, Microsoft, Google, and Amazon have announced plans for natural gas power plants for data centers.
Connected Companies & Entities
4 Entities mapped“Meta... announcing plans for new natural gas power plants...”
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Related Market Signals & Shifts
Recent verified developments and strategic activity across this market segment.
Data center demand fuels 66% rise in gas plant costs
Tech companies' growing appetite for electricity to power large data centers has coincided with a sharp rise in the cost and lead time to build natural gas power plants. A BloombergNEF report cited by TechCrunch finds the price to build a combined-cycle gas turbine (CCGT) plant rose about 66% over two years — from under $1,500/kW in 2023 to $2,157/kW — and project completion now takes ~23% longer. Data-center electricity demand is projected to grow from about 40 GW today to 106 GW by 2035. Shortages and steep price increases for gas-turbine equipment (expected +195% vs. 2019) are extending waitlists into the early 2030s. Some companies, notably Google, are exploring renewables paired with long-duration storage (iron‑air batteries) as alternatives to new gas generation.
Hyperscalers' Natural Gas Bets Could Backfire
A Noreva research forecast warns that rising demand from hyperscalers building gigawatt-scale natural gas plants to power AI data centers could push U.S. natural gas prices far higher — in some regions above $10/MMBtu — as domestic supply growth slows and exports rise. The report and Noreva CEO Peter Gardett say hyperscalers (Amazon, Google, Meta, Microsoft) may be exposed to significant fuel-price risk after recent moves to build or contract large gas-fired generation. Higher gas prices would raise data-center power costs, could increase end-user electricity bills, and may alter hyperscalers’ operating choices (e.g., connecting to the grid). The article cites announced projects (Meta, Microsoft, Google, Amazon) and frames the forecast as a potential business and reputational risk for cloud/AI infrastructure providers.
Data centers to quadruple U.S. electricity use by 2035
A BloombergNEF forecast projects U.S. data centers will consume one-fifth of U.S. electricity by 2035 — roughly four times today’s share — driven by a surge in AI compute. Data center capacity is expected to approach 200 gigawatts over the next decade, with nearly half devoted to AI training and inference; the U.S. is forecast to account for 64% of AI chip power demand by 2033. BloombergNEF’s 2035 electricity estimate is 83% higher than its prior forecast, and other organizations (EPRI, S&P) have also raised their projections. Major U.S. grids will face strain: PJM could see 34% of its power go to data centers and ERCOT 22%, contributing to higher prices and interconnection challenges. Globally, aggressive AI adoption could add about 1,935 TWh of new demand by 2033.
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