The rapid expansion of natural gas-powered data centers poses a significant near-term risk for Anthropic, the company warned in its IPO filing on Monday. As AI infrastructure drives demand for electricity, rising competition for natural gas could increase prices in some regions, disrupt fuel supplies and affect Anthropic’s ambitions as well as data center operators across the United States.
AI data centers increase natural gas demand
America’s data center boom is expected to consume vast amounts of natural gas. Rather than wait years for grid connections, some companies are choosing to build private, behind-the-meter power plants at or near their facilities.
Energy analysis firm Cleanview estimates that behind-the-meter gas projects in development could grow from 20 gigawatts in July 2025 to 110 gigawatts by October 2026.
Anthropic said competition from other natural gas-fired data centers could expose it to “fuel price fluctuations and supply disruptions beyond our control.” The company also warned that “natural gas prices in such regions may increase, which may adversely affect our ability to contract for stable fuel supplies.”
The expected increase in data center demand comes as the U.S. natural gas market is already under pressure. American export terminals are sending more gas overseas for several reasons, including geopolitical conflicts and federal support for exports. Export demand is expected to double over the next decade.
Data centers could add substantial demand even if only some of the projects currently in development are built. BloombergNEF estimates that grid-connected data centers alone could consume 15 billion cubic feet of natural gas per day by 2035. That would increase overall demand by 15%. A conservative estimate suggests that on-site gas capacity from projects in the pipeline could add another 3 billion cubic feet per day over the next 10 years.
Anthropic expands beyond cloud providers
Anthropic has traditionally depended on rented computing capacity from major cloud service providers. Its IPO filing specifically names Amazon, Google, Microsoft and SpaceX.
The filing also refers to Anthropic’s use of server capacity at the Colossus data center in Memphis, Tennessee, which is facing a lawsuit over its reliance on unlicensed gas turbines.
In recent months, however, Anthropic has begun leasing and developing data centers directly. The strategy is intended to reduce its dependence on other technology companies and give it more direct control over its computing infrastructure.
Anthropic’s IPO filing highlights a $50 billion partnership announced last year with Fluidstack. Under the agreement, Fluidstack will “provide data center development and operations services.” The companies have announced data center sites in Texas and New York.
On-site power brings new exposure
Building or leasing data center capacity directly could give Anthropic more control, but it would also expose the company to additional risks, including higher natural gas prices.
Anthropic is involved in data center development with large on-site gas projects in Louisiana, Texas and West Virginia. According to developer Nscale, the West Virginia project could eventually become one of the largest gas plants in the United States, according to the company’s IPO application.
Source: www.wired.com