Anthropic Flags Gas Supply as One of Its Biggest Near-Term Risks
The data center buildout could cause a massive increase in gas prices as companies scramble for limited supplies and infrastructure fails to meet demand.
Anthropic, a prominent cloud computing company, has identified natural gas supply as one of its most significant risks in the near term, as the demand for gas grows alongside the expansion of data centers. Analysts estimate that 110 gigawatts of behind-the-meter gas projects are in development, up from 20 gigawatts in 2025. Anthropic's IPO filing highlights the potential for "fuel price volatility and supply disruptions" to impact its operations and increase the cost of natural gas.
The surge in demand for gas comes as US export terminals send more gas abroad, and competition from other natural gas-fired data centers could lead to "adversely affect our ability to contract for firm fuel supply." With grid-connected data centers alone expected to add 15 billion cubic feet per day of natural gas demand by 2035, Anthropic's own data centers, which are being developed in Texas, New York, Louisiana, Texas, and West Virginia, could expose the company to regional gas supply shocks and market fluctuations.
The company acknowledges this risk, stating that competition among users for the same natural gas supply and pipeline capacity could drive up prices, potentially affecting both data center operations and home energy bills. While Anthropic dismisses the possibility of renewable energy sources meeting its energy needs, it remains a potential solution to the natural gas supply challenge.
Written by urgent.news from Wired's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
