Energy Transfer to provide gas to CloudBurst data centre

Author: Simon Rowley

Energy Transfer has announced that it has entered into a long-term agreement with Denver-based CloudBurst Data Centers to provide natural gas to CloudBurst’s flagship AI-focused data centre 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-generation data centre 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 centre 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 centre. Energy Transfer says that it is uniquely positioned to provide reliable natural gas supply that is crucial to the data centre 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 centre developers and expects this to be the first of many agreements to supply, store and transport natural gas to fuel data centres, electric generation facilities and other power demand customers throughout its nationwide footprint.

Cynthia Thompson Executive Chair, CloudBurst Data Centers, comments, “We are very excited about our close relationship with Energy Transfer and feel extremely confident in its ability to provide redundancy through its vast pipeline network and storage capacity. In addition, we will work closely with Energy Transfer to identify additional potential data centre sites, on or close to their strategic natural gas pipeline network, using our proprietary site selection software.”