US Data Centers Forecast to Drive Natural Gas Demand Surge
The International Energy Agency (IEA) has forecast that US data-center natural gas demand will rise by 2035, according to a report published on September 14, 2026. This increase is expected due to growing electricity needs of data centers, which can either draw power from the grid or generate it on-site using gas-fired turbines.
When grid connections and supporting infrastructure are delayed, on-site generation becomes an attractive option for data center operators. The IEA projects that additional annual electricity generation from gas-fired power plants will increase by more than 130 TWh per year between 2024 and 2030, with renewables contributing 110 TWh per year.
Natural gas currently accounts for over 40% of the electricity physically consumed by US data centers, which can have different power arrangements depending on their individual needs. The increasing demand for natural gas in data centers may put pressure on prices in areas where generation, capacity, or grid upgrades are scarce.