Iran Strike, Export Curbs Expose Helium, Power Chokepoints

Iran’s March 18 strike on Qatar’s Ras Laffan LNG complex damaged a major source of helium, while Russian export controls and shortages of transformers, switchgear and batteries in the United States are constraining supplies used by semiconductor factories and data centers.

According to the U.S. Geological Survey, global helium production in 2025 was about 190 million cubic meters. The United States, Qatar and Russia together accounted for roughly 84% of that output. Qatar produced about 63 million cubic meters in 2025, with nearly all of its helium coming from the Ras Laffan Industrial City LNG complex.

QatarEnergy declared force majeure on some long-term LNG contracts after the March strikes and warned that repair work could take years. The state-owned company wrote in a press release that the damage could “cost about $20 billion a year in lost revenue and to take up to five years to repair, impacting supply to markets in Europe and Asia.”

Helium is used in semiconductor manufacturing for cooling, leak detection and other precision processes that keep fabrication equipment running. Taiwan’s chip fabs source much of their helium from Qatar, creating direct links between Ras Laffan output and global chip production.

In April, Russia imposed export controls on helium through the end of 2027, citing domestic needs for specialty gases used in fiber-optic components and other applications. The export limits reduce options for buyers that rely on long-term contracts with large producers.

U.S. data center developers report that about half of the projects scheduled to open this year face delays or cancellations because transformers, switchgear and batteries are in short supply. Those same components are also needed for electric grid upgrades to support growing demand from electric vehicles and heat pumps. Domestic manufacturing capacity for heavy electrical equipment has not kept pace with demand, increasing reliance on overseas suppliers.

Technology companies have announced large capital budgets tied to artificial intelligence infrastructure. Alphabet, Amazon, Meta and Microsoft together forecast roughly $650 billion in capital spending for 2026, which includes new data centers and related power and cooling systems.

Repairing damaged facilities, developing new helium sources and expanding production of heavy electrical gear require years of investment and permitting. With the damage at Ras Laffan, Russian export curbs in place and U.S. equipment bottlenecks ongoing, manufacturers and data center operators face extended lead times to restore and expand supply.