Energy Transfer Secures Natural Gas Contract for CloudBurst's Texas AI Data Center
Another sign that natural gas is the best source of power for data centers?
Energy Transfer LP’s recent contract to supply natural gas to CloudBurst Data Centers is a prime example of American energy innovation at its finest. The deal, which leverages Energy Transfer’s Oasis Pipeline to deliver up to 450,000 MMBtu per day of natural gas, will power CloudBurst’s AI-focused data center campus in Texas. This agreement underscores the critical role American hydrocarbons play in fueling the technologies driving the future.
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AI data centers are power-hungry, and their energy needs are only growing. These facilities demand reliable, scalable electricity that renewables alone often can’t deliver. Natural gas steps in as the backbone, ensuring uninterrupted operations for cutting-edge industries like AI. Energy Transfer’s ability to directly supply gas through its extensive pipeline network showcases American ingenuity in action—bypassing traditional grids and delivering tailored energy solutions to meet the exact needs of high-tech facilities.
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The scale is impressive. CloudBurst’s campus is set to generate up to 1.2 GW of power, comparable to a small power plant, with the contract running for at least a decade starting in 2026. It’s a testament to the flexibility and reliability of American energy infrastructure.
American hydrocarbons, particularly natural gas, are a cornerstone of this story. They provide the consistent energy required to power innovation, from AI to advanced manufacturing. Energy Transfer’s vast network, including pipelines and storage facilities, positions the U.S. as a global leader in energy security and technological progress. The company’s strategic presence in Texas, a hub for data center growth, further cements its role in supporting the nation’s tech dominance.
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Investors are taking note. Energy Transfer’s stock is seen by some as undervalued, given its critical role in the energy market and its ability to capitalize on emerging trends. With infrastructure already in place and a proven track record, the company is well-positioned to meet the rising demands of the digital economy. Of course, there are risks—market fluctuations, regulatory changes, or advancements in energy-efficient AI—but the fundamentals remain strong.
This contract is more than a business deal; it’s a blueprint for how American energy and technology can work hand in hand. It highlights the unmatched reliability of U.S. hydrocarbons and the ingenuity of domestic companies in solving complex challenges. As AI grows, American energy will continue to fuel its growth, ensuring the U.S. remains at the forefront of innovation.