Energy Transfer Is Taking Its First Step to Cash In on AI-Fueled Natural Gas Demand
Artificial intelligence (AI) requires a tremendous amount of electricity to power the specialized chips needed to run this technology. Because of that, many forecasters expect that natural gas demand will accelerate in the coming years as companies build more power plants to support AI data centers. This trend should enable pipeline companies to transport more gas in the future. As a leading natural gas pipeline operator, Energy Transfer (NYSE: ET) is in an excellent position to capitalize on the expected AI-powered surge in gas demand. The company recently took its first step to cash in on growing gas demand from data centers. Here's a look at the deal and the company's gas-fueled growth potential.Energy Transfer recently revealed that it has entered into a long-term agreement to provide natural gas to CloudBurst's flagship AI-focused data center development in Central Texas. The company will provide up to 450,000 MMBtus per day of natural gas to CloudBurst's Next-Gen Data Center Campus near San Marcos, Texas, assuming CloudBurst reaches a Final Investment Decision (FID) with its customer on the project. Continue reading
Artificial intelligence (AI) requires a tremendous amount of electricity to power the specialized chips needed to run this technology. Because of that, many forecasters expect that natural gas demand will accelerate in the coming years as companies build more power plants to support AI data centers. This trend should enable pipeline companies to transport more gas in the future.
As a leading natural gas pipeline operator, Energy Transfer (NYSE: ET) is in an excellent position to capitalize on the expected AI-powered surge in gas demand. The company recently took its first step to cash in on growing gas demand from data centers. Here's a look at the deal and the company's gas-fueled growth potential.
Energy Transfer recently revealed that it has entered into a long-term agreement to provide natural gas to CloudBurst's flagship AI-focused data center development in Central Texas. The company will provide up to 450,000 MMBtus per day of natural gas to CloudBurst's Next-Gen Data Center Campus near San Marcos, Texas, assuming CloudBurst reaches a Final Investment Decision (FID) with its customer on the project.
