Energy Transfer LP (NYSE: ET) announced that it has entered into a long-term agreement with Denver-based CloudBurst Data Centers, Inc. (“CloudBurst”) to provide natural gas to CloudBurst’s flagship AI-focused data center 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-Gen Data Center 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 center 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 center. Energy Transfer is uniquely positioned to provide reliable natural gas supply that is crucial to the data center 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 center developers and expects this to be the first of many agreements to supply, store and transport natural gas to fuel data centers, electric generation facilities and other power demand customers throughout its nation-wide footprint.
“We are very excited about our close relationship with Energy Transfer and feel extremely confident in their ability to provide redundancy through their vast pipeline network and storage capacity. In addition, we will work closely with Energy Transfer to identify additional potential data center sites, on or close to their strategic natural gas pipeline network, using our proprietary site selection software,” said Cynthia Thompson Executive Chair, CloudBurst Data Centers, Inc.
About Energy Transfer
Energy Transfer LP (NYSE: ET) owns and operates one of the largest and most diversified portfolios of energy assets in the United States, with more than 130,000 miles of pipeline and associated energy infrastructure. Energy Transfer’s strategic network spans 44 states with assets in all of the major U.S. production basins. Energy Transfer is a publicly traded limited partnership with core operations that include complementary natural gas midstream, intrastate and interstate transportation and storage assets; crude oil, natural gas liquids (“NGL”) and refined product transportation and terminalling assets; and NGL fractionation. Energy Transfer also owns Lake Charles LNG Company, as well as the general partner interests, the incentive distribution rights and approximately 21% of the outstanding common units of Sunoco LP (NYSE: SUN), and the general partner interests and approximately 39% of the outstanding common units of USA Compression Partners, LP (NYSE: USAC). For more information, visit the Energy Transfer LP website at www.energytransfer.com.
About CloudBurst
CloudBurst Data Centers, Inc., develops digital infrastructure powered by transition, green and renewable energy solutions with the aim of meeting the growing demand of the next generation (Next-Gen) of AI and data-led enterprises. Our mission is to build and operate AI/HDC, modular, Next-Gen Data Centers powered by the most economic energy solutions, but with an emphasis on being first to market offering Value, Reliability, Innovation, Service, Efficiency, Sustainability, and Security.
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