Energy Transfer agreed to provide up to 450,000 MMBtu/d of natural gas to CloudBurst Data Centers Inc.’s flagship AI-focused development in Central Texas. (Source: Shutterstock)
Energy Transfer LP (ET) has signed its first commercial arrangement to supply natural gas directly to a data center.
ET entered into a long-term agreement to provide natural gas to Denver-based CloudBurst Data Centers Inc.’s flagship AI-focused development in Central Texas, the companies said Feb. 10. Under the agreement, Energy Transfer’s Oasis Pipeline LP will provide up to 450,000 MMBtu/d of firm natural gas supply to CloudBurst’s Next-Gen Data Center campus outside of San Marcos, Texas.
The agreement is subject to CloudBurst reaching a final investment decision (FID) with its customer. CloudBurst expects to reach FID later this year with the facility operational in third-quarter 2026.
The natural gas supply would be sufficient to generate up to approximately 1.2 gigawatts of direct, or “behind-the-meter,” electric power for a period of at least 10 years starting with Phase 1 of the data center facilities.
Energy Transfer said it is positioned to provide reliable natural gas supply crucial to the data center operations under development, many of which are in close proximity to its network of more than 105,000 miles of natural gas gathering and intrastate and interstate transportation pipelines and storage facilities, with a combined storage capacity of nearly 236 Bcf.
Energy Transfer is also in discussions with a number of data center developers and expects this to be the first of many agreements to supply, store and transport natural gas to fuel data centers, electric generation facilities and other power demand customers throughout its nation-wide footprint.
“We are very excited about our close relationship with Energy Transfer and feel extremely confident in their ability to provide redundancy through their vast pipeline network and storage capacity. In addition, we will work closely with Energy Transfer to identify additional potential data center sites, on or close to their strategic natural gas pipeline network, using our proprietary site selection software,” said Cynthia Thompson, executive chair at CloudBurst.
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