Energy Transfer Sees Strong Growth as Data Centers Fuel Natural Gas Demand

Energy Transfer, a pipeline giant, has quietly become one of the biggest natural gas suppliers to data centers. This puts it in a strong position to cash in on the AI power boom.

Data centers need lots of power and they need it quickly. The country's electric grid can't keep up with the load requirements or the need for speed. As a result, natural gas is becoming a critical solution to the AI power problem.

Energy Transfer has signed several deals to supply gas to support AI data center demand. One of its biggest deals is with cloud giant Oracle, which will provide about 900,000 Mcf/d of natural gas to three of its U.S. data centers. The company also has a 150,000 Mcf/d deal to supply Nexus with gas for an AI hyperscale campus currently under construction.

Energy Transfer is expecting strong growth due to the projects underway that should enter commercial service through early 2030. It expects to grow its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) by at least 17.5% this year.