Energy Transfer Quietly Becomes a Top Player in AI Data Center Gas Supply

Energy Transfer has quietly become one of the largest natural gas suppliers to AI data centers. This is due in part to its extensive gas infrastructure, which includes nearly 107,000 miles of pipelines linking supply sources to demand centers.

The company has signed several deals with major players like Oracle and Entergy to provide natural gas for their data centers. For example, it will supply about 900,000 Mcf/d of natural gas to three of Oracle's U.S. data centers. Energy Transfer is also providing more gas to utilities that need it to generate power for AI data centers.

This growth in demand for natural gas has enabled Energy Transfer to make larger investments in its infrastructure. The company currently has several large-scale gas pipelines under construction, including the $2.7 billion Hugh Brinson and up to $5.6 billion Desert Southwest. These projects have strong returns and support Energy Transfer's continued strong growth.