AI Data Centers Drive Surge in U.S. Natural Gas Demand

The rapid expansion of AI and cloud computing is boosting natural gas use, complicating global climate goals and renewable energy transitions.

U.S. shale gas producers are targeting AI-driven data centers to offset low natural gas prices, with demand projected to rise by up to 6 billion cubic feet per day by 2030.
Energy companies and utilities are building new natural gas plants and delaying fossil fuel plant retirements to meet the growing power needs of data centers.
Global data centers are expected to contribute 2.5 billion metric tons of CO2 emissions by 2030, raising concerns about their environmental impact despite renewable energy pledges by tech giants like Amazon, Microsoft, and Google.
Constraints in renewable energy deployment and grid capacity are forcing reliance on natural gas and, in some regions, coal, to support data center expansion in the U.S., Europe, and Asia.
The surge in fossil fuel use for data centers is seen as a key challenge at COP29 climate talks, as nations struggle to balance digitalization demands with decarbonization goals.