US data centers face rising gas consumption and fire risks

U.S. data centers are projected to consume more natural gas than most nations within the next decade. According to an analysis by BloombergNEF, gas consumption for data center electricity is expected to grow by 15 billion cubic feet per day by 2035. This volume would exceed the current consumption of all countries except China, Russia, Iran, and the United States.

Developers are increasingly favoring on-site gas power due to availability and lower marginal costs compared to industrial electricity tariffs. Fuel cells, such as those from Bloom Energy, offer the lowest variable operational costs at approximately $21.5 per megawatt-hour.

However, the shift toward on-site power and battery storage introduces significant safety concerns. MSIG USA reports that data centers utilizing on-site turbines or batteries face a tenfold increase in fire or explosion risk compared to those connected solely to the grid. Insurers note that lithium-ion batteries, frequently used near server environments, carry the risk of thermal runaway, which can create self-sustaining, difficult-to-control fires.