Energy Transfer Poised to Capitalize on AI Power Boom with Natural Gas Deals

Energy Transfer is quietly becoming one of the largest natural gas suppliers to AI data centers. The company has signed several deals to provide gas to data centers, including a big deal with cloud giant Oracle. Energy Transfer will supply about 900,000 Mcf/d of natural gas to three of Oracle's U.S. data centers.

The gas is being used to power Bloom Energy's advanced fuel cells at one of the sites. Additionally, Energy Transfer has signed deals with other companies, including Nexus and Crusoe, to provide gas for their AI hyperscale campuses and factories. The company is also providing more gas to utilities to support growing power demand from AI data centers.

Energy Transfer's growth profile is being enhanced by the AI power boom. The company expects to grow its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) by at least 17.5% this year. It currently has several large-scale gas pipelines under construction, including the $2.7 billion Hugh Brinson and up to $5.6 billion Desert Southwest.