Energy Transfer inks gas supply deal with US data centre

USA

DALLAS, February 11, 2025 – US pipeline operator Energy Transfer has signed a long-term supply agreement with Denver-based CloudBurst Data Centers under which Energy Transfer will supply up to 450 billion Btu per day of natural gas to CloudBurst’s planned data centre in San Marco, Texas, Energy Transfer announced on Monday.

The natural gas will be sufficient to generate up to 1.2 GW of direct electric power. Under the terms of the deal, gas will be supplied for at least 10 years starting from the data centre’s expected operational start in Q3 2026. The agreement is subject to CloudBurst reaching a FID on the project.

This is Energy Transfer’s first commercial supply arrangement directly with a data centre, but the company is leveraging its network of more than 170,000 kilometres of natural gas transportation infrastructure to establish agreements with others as data centres begin to bypass utilities to source power for their operations and seek bilateral agreements directly with energy companies.

“We are excited about our relationship with Energy Transfer and feel confident in their ability to provide redundancy through their vast pipeline network and storage capacity. We will work closely with Energy Transfer to identify additional potential data centre sites, on or close to their strategic natural gas pipeline network,” said Cynthia Thompson, executive chair of CloudBurst Data Centers.

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