Energy Transfer signs Natural Gas Supply Agreement with CloudBurst

Energy Transfer, a U.S. pipeline company, entered into an agreement on Monday with CloudBurst Data Centers of Denver to supply natural gas for the development of Central Texas.

Data centers, driven by the rising demand for power from AI and the slow grid improvements, are sourcing energy directly from producers, or establishing their own supply, which will likely lead to a significant increase in natural gas consumption.

Energy Transfer will supply up to 450,000 billion British thermal units of natural gas per day through its Oasis pipeline to CloudBurst’s campus outside San Marcos, Texas. This is contingent on the data center operator making a final decision with its customer.

The pipeline operator stated that the natgas will provide up to 1.2 gigawatts in direct electricity for at least 10 year starting with the Phase 1 data center facility.

Dallas-based company said that the agreement is its first commercial agreement to supply natural gases directly to a Data Center.

CloudBurst is expecting to achieve FID in the second half of this year. The facility could become operational by the third quarter 2026. (Reporting and editing by Vijay Kishore in Bengaluru, with Pooja menon reporting from Bengaluru)

(source: Reuters)