BATON ROUGE, LOUISIANA (Steve Stewart, Energy Analytics Institute, 10.Feb.2025) — Energy Transfer LP entered into a long-term agreement to supply natural gas to Denver-based CloudBurst Data Centers, Inc.‘s flagship artificial intelligence or AI-focused data center development in Central Texas.
Under the agreement, Energy Transfer’s Oasis Pipeline, LP will provide up to 450,000 MMBtu per day of firm gas supply to CloudBurst’s Next-Gen Data Center campus located outside of San Marcos, Texas, Energy Transfer announced 10 Feb. 2025 in an official statement.
The agreement is subject to CloudBurst reaching a final investment decision (FID) with its customer. CloudBurst expects to reach FID in late 2025 and in such event the facility would be operational in the third-quarter 2026, according to Energy Transfer.
The gas supply would be sufficient to generate up to 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.
“This represents Energy Transfer’s first commercial arrangement to supply gas directly to a data center,” Energy Transfer said. And, Energy Transfer is in discussions with a number of data center developers, the company said.
Energy Transfer said it is positioned to provide gas to the data center operations under development, many of which are in close proximity to its vast network of over 105,000 miles of gas gathering, and intrastate and interstate transportation pipelines and storage facilities with a combined storage capacity of nearly 236 billion cubic feet (Bcf).
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By Steve Stewart reporting from Baton Rouge. © 2025 Energy Analytics Institute (EAI). All Rights Reserved.
