US designates helium as critical material for AI and data centers

On October 23, 2026, the U.S. Department of Energy designated helium as a critical material to bolster domestic supply chains for semiconductors, artificial intelligence, and data centers. Driven by geopolitical supply risks—including Qatari shipping disruptions and Russian export controls—the designation enables federal financing and oversight for helium producers. While the U.S. produced 43% of global helium in 2025, domestic output remains constrained by plant capacity limits following the 2024 privatization of the national helium reserve.

U.S. Department of Energy critical material designation

• ▪Avanti Helium CEO Chris Bakker stated that designating helium as a critical material will provide significant support for exploration of new reserves
• ▪The U.S. Department of Energy designated helium as a critical material, enabling federal financing for helium producers and increasing government oversight
• ▪U.S. Department of Energy criteria for critical material designation require a non-fuel mineral or substance to perform essential energy technology functions and face high supply chain disruption risks
• ▪Helium became the 20th critical material identified by the U.S. Department of Energy, following the addition of metallurgical coal in 2025

Importance of helium for semiconductors and artificial intelligence

• ▪Semiconductor manufacturing relies on helium for cooling, photolithography, and leak detection, with the U.S. Department of Energy noting no viable substitutes exist in many applications
• ▪Expansion of artificial intelligence infrastructure and data centers in the United States relies on domestic semiconductor production supported by helium gas
• ▪Federal critical material designation for helium may spur federal grants and drilling projects for artificial intelligence data center infrastructure in Kansas, Oklahoma, and Texas

International helium supply disruptions

• ▪Russia imposed temporary export controls on helium in April 2026 to protect domestic supplies
• ▪Helium exports from Qatar experienced severe curtailment following Iran's closure of the Strait of Hormuz and Iranian strikes on Qatari infrastructure

U.S. helium production and facility expansion

• ▪U.S. helium production faces constraints because existing extraction plants operate at capacity limits and constructing new permitted facilities requires several years
• ▪Six new U.S. helium operations opened in 2025 across New Mexico, Colorado, Kansas, and Montana, alongside a new storage cavern in Beaumont, Texas
• ▪In 2025, the United States produced 81 million cubic meters of helium—representing 43 percent of global supply—and exported 38 million cubic meters
• ▪Twenty-nine U.S. plants produced helium in 2025 across states including Utah, Arizona, Colorado, Wyoming, New Mexico, Kansas, Oklahoma, and Texas

Privatization of the national strategic helium reserve

• ▪Congress mandated the privatization of the national strategic helium reserve in Texas in 2013
• ▪The U.S. Bureau of Land Management privatized the national strategic helium reserve by completing its sale to industrial gas company Messer in 2024