Up to half of planned data centers in the United States may face delays or cancellations as infrastructure constraints and regulatory opposition slow development, energy firm Kimmeridge Energy Management Co. warned on Wednesday.
The company, which tracks energy demand linked to technology expansion, estimates that data centers could add 5 billion to 10 billion cubic feet per day of U.S. natural gas consumption. However, delays in project approvals and construction may push AI-related gas demand toward the lower end of that range. Total expected growth in U.S. gas demand remains at 30 billion cubic feet per day, with much of the increase tied to liquefied natural gas exports.
Ben Dell, managing partner and co-founder of Kimmeridge, noted that technology expansion is colliding with real-world limitations, including infrastructure shortages, political resistance, and local opposition. States such as Pennsylvania, Texas, and Ohio—once seen as favorable for data center development—now face growing pushback across party lines. The issue has also emerged as a factor in the upcoming U.S. midterm elections.
Dell emphasized that ideal data center proposals would have no net impact on water usage, land, emissions, or power prices. The delays come despite efforts to build new power plants to meet electricity demands from AI operations, which could otherwise drive significant growth in natural gas consumption.
Historically, U.S. natural gas prices have traded at relatively low levels for most of the past decade, largely due to oversupply from fracking operations. The slowdown in data center development may further temper demand forecasts, particularly in regions where local opposition has intensified.
