Energy Transfer, CloudBurst Strike Long-Term Natural Gas Supply Deal for Texas Data Center
U.S. pipeline giant Energy Transfer has signed a long-term natural gas supply contract with CloudBurst Data Centers for its development in Central Texas.
Data Centers Driving Natural Gas Demand
Amidst rising AI workload and slow grid upgrades, data centers are seeking alternative energy sources. This shift is expected to increase natural gas consumption in the coming years.
Energy Transfer's Role
Energy Transfer will deliver up to 450,000 million British thermal units per day (MMBtu/d) of firm natural gas to CloudBurst's San Marcos campus via its Oasis Pipeline. This supply will generate 1.2 gigawatts (GW) of direct electric power for at least a decade, starting with Phase 1 of the data center.
Groundbreaking Partnership
The agreement marks Energy Transfer's first commercial deal to supply natural gas directly to a data center. CloudBurst anticipates reaching a final investment decision (FID) later this year, with operations scheduled to commence in Q3 2026.