Overview

Kimmeridge Energy Management Co., which holds stakes in natural‑gas producers and the Commonwealth LNG export terminal in Louisiana, warned that up to half of the United States’ planned data‑center projects could be delayed or cancelled. Managing partner and co‑founder Ben Dell made the observation during an interview at Bloomberg News headquarters in New York, citing political opposition and construction challenges as the primary drivers of the risk.

Impact on Natural‑Gas Demand

Dell noted that the United States expects an overall increase of about 30 billion cubic feet per day (bcfd) in gas demand, with the bulk of this growth projected to come from liquefied natural gas (LNG) exports. He estimated that data‑center development could contribute an additional 5 to 10 bcfd of gas consumption. However, the anticipated delays may shift AI‑related gas use toward the lower end of that range, thereby reducing the net uplift to gas demand.

Political and Regional Opposition

Opposition to data‑center construction is intensifying across party lines in several key states, including Pennsylvania, Texas and Ohio—states that had previously been more receptive to such projects. Dell highlighted that this resistance is becoming a factor in the upcoming U.S. midterm elections, with local‑level legal challenges and public push‑back adding to project risk.

Environmental and Cost Considerations

When asked about the ideal characteristics of a data‑center proposal, Dell said it should have no net impact on water usage, land footprint, emissions, or electricity prices. He emphasized that meeting these criteria would mitigate many of the concerns raised by investors, regulators and community groups.

Outlook

Kimmeridge expects the delays to translate into lower forecasts for U.S. natural‑gas demand, even as new power‑plant capacity is being built to support AI‑driven electricity consumption. The firm’s comments underscore the growing tension between the rapid expansion of the technology sector and the physical‑infrastructure constraints of the energy system.