Energy Transfer LP announced that it has entered into a long-term agreement with Denver-based CloudBurst Data Centers, Inc. to provide natural gas to CloudBurst’s flagship AI-focused data center development in Central Texas.
The agreement calls for Energy Transfer’s Oasis Pipeline, LP to provide up to 450,000 MMBtu per day of firm natural gas supply to CloudBurst’s Next-Gen Data Center campus outside of San Marcos, Texas, subject to CloudBurst reaching a final investment decision (FID) with its customer. 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. CloudBurst expects to reach FID later this year and in such event the facility would be operational in Q3 of 2026.
This represents Energy Transfer’s first commercial arrangement to supply natural gas directly to a data center. Energy Transfer is uniquely positioned to provide reliable natural gas supply that is crucial to the data center operations under development, many of which are in close proximity to its vast 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 billion cubic feet. Additionally, Energy Transfer is 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, CloudBurst Data Centers, Inc.
