Venture Global, a major exporter of liquefied natural gas (LNG), is pivoting to become an AI utility by targeting 10 gigawatts of data center capacity by 2034. The company plans to build 16 modular "power islands" to meet this goal, leveraging its expertise in power generation and natural gas logistics. Framework agreements with GE Vernova and Baker Hughes are in place for equipment, with initial power expected to come online between 2028 and 2029.
The shift comes as hyperscalers face a significant bottleneck: electricity supply. Venture Global aims to capitalize on this demand by providing both the power infrastructure and the natural gas fuel needed to run data centers. The company's modular approach, which it previously used for LNG liquefaction, allows for scalable and efficient power generation.
However, a key hurdle remains: securing binding agreements with major hyperscalers. While Venture Global has framework agreements with equipment suppliers, it has yet to finalize commitments from technology companies. The company hopes to convert its first reservation into a binding order by the end of this year.
The pivot to an AI utility represents a high-risk, high-reward strategy for Venture Global. If successful, it could significantly rewrite the company's investment thesis. But the capital-intensive nature of the project means that customer commitments are crucial to its success.