AI and Data Center Boom Opens New Growth Prospects for Natural Gas Demand

DOHA — The rapid expansion of artificial intelligence, cloud computing and digital services is turning data centers into a major new source of global electricity demand, creating fresh opportunities for the natural gas and LNG industry.

Data centers require large volumes of uninterrupted power around the clock. As computing capacity expands, energy systems increasingly need dependable and flexible generation capable of supporting constant loads while renewable power continues to grow.

Data Centers Become Backbone of the Digital Economy

ICT expert Mohammed Alam told Qatar News Agency that data centers have moved beyond their traditional role as supporting infrastructure and are now central to the digital economy, underpinning services in sectors including government, finance and healthcare.

The expansion of AI is adding another layer of demand because advanced computing systems need substantial power continuously. Citing International Energy Agency estimates, Alam said global data-center electricity consumption could rise from about 485 terawatt-hours in 2025 to roughly 950 terawatt-hours by 2030.

Natural Gas Gains Importance as Power Demand Rises

The need for reliable electricity is strengthening the role of natural gas as a flexible generation source. Gas-fired power can support grids when demand is high or when output from weather-dependent renewable sources such as solar and wind declines.

This does not remove the role of renewable energy. Instead, power-sector planning increasingly involves a combination of renewable generation, flexible gas capacity, storage, grid upgrades and efficiency measures.

AI Could Reshape the LNG Market

Nayef Al Nabet, a non-resident fellow at the Middle East Council on International Affairs specialising in AI governance, told QNA that the uninterrupted energy needs of data centers are influencing expectations for future LNG demand.

He noted that discussions that had previously focused on the possibility of excess LNG supply as new production capacity enters the market are increasingly considering whether computing-related demand could absorb part of that additional supply.

Energy Producers Move Closer to Computing Infrastructure

Al Nabet said energy-producing countries are no longer limited to supplying fuel. Some are also moving toward direct investment in computing infrastructure, bringing energy providers into strategic discussions that were previously dominated by companies controlling chips, computing models and other digital technologies.

Efficiency Will Be Critical

As data centers consume more electricity, the efficiency of their design and operation is becoming increasingly important. Alam said performance should be judged by the useful computing produced from each unit of energy rather than simply by the amount of electricity consumed.

Important factors include high-density infrastructure, cooling systems adapted to local climate conditions, efficient resource use and careful distribution of computing loads among local data centers, cloud infrastructure and edge-computing facilities.

AI itself could also help reduce energy waste by forecasting loads, optimising cooling and improving how computing resources are allocated.

Qatar Positioned to Benefit

For Qatar, the convergence of energy and digital infrastructure could create significant opportunities. The country combines major natural-gas reserves and expanding LNG production capacity with ambitions to strengthen its digital economy and artificial-intelligence capabilities.

Alam described investment in data centers and AI as an evolution of Qatar's established ability to convert energy resources into economic value — with energy increasingly being transformed into computing capacity, knowledge and digital services.

He linked this shift with the economic and environmental pillars of Qatar National Vision 2030, arguing that efficiency and sustainability can become long-term competitive advantages.

LNG Demand Could Reach 600–700 Million Tonnes by 2035

QNA cited previous projections indicating that global LNG demand could reach between 600 million and 700 million tonnes annually by 2035, supported by global economic growth and emerging sources of electricity demand including AI and data centers.

US Utilities Already Seeing the Impact

The scale of the shift is particularly visible in the United States. QNA cited a Grid Strategies report estimating that data centers account for roughly 55% of the electricity-demand growth projected by US utilities over the next five years.

As a result, some utilities are accelerating plans for new generating capacity, while others are reconsidering plans to retire conventional power plants in order to maintain sufficient reserves as grid loads rise.

Key Figures

•    Global data-center electricity consumption: about 485 TWh in 2025.
•    Projected global data-center electricity consumption: about 950 TWh by 2030.
•    Projected LNG demand: 600–700 million tonnes annually by 2035.
•    Data centers account for roughly 55% of projected US utility electricity-demand growth over the next five years, according to a Grid Strategies report cited by QNA.

Energy and Computing Converge

The data-center boom is increasingly linking the future of the digital economy with the future of energy. While efficiency, renewables and better grid management will remain essential, the need for reliable around-the-clock electricity is creating a potentially important new demand channel for natural gas.

For gas-rich economies such as Qatar, the trend could open opportunities not only as energy suppliers but also as investors in the computing infrastructure that will underpin the next phase of global digital growth.

Source
•    Qatar News Agency (QNA), August 19, 2026.
Editorial note: This is a rewritten, publication-ready version based on the QNA report. Forecasts cited are projections and should not be interpreted as guaranteed future outcomes.