Energy Transfer LP has entered into a long-term agreement with Denver-based CloudBurst Data Centers, Inc. to supply natural gas for CloudBurst’s AI-driven data center development in Central Texas. Under the agreement, Energy Transfer’s Oasis Pipeline will provide up to 450,000 MMBtu per day of firm natural gas to CloudBurst’s Next-Gen Data Center campus near San Marcos, Texas. The supply is contingent on CloudBurst securing a final investment decision (FID) with its customer. If approved, this natural gas will generate approximately 1.2 gigawatts of direct, behind-the-meter electric power for a minimum of 10 years, beginning with Phase 1 of the data center.

CloudBurst anticipates reaching FID later this year, with operations expected to commence in the third quarter of 2026. This marks Energy Transfer’s first direct natural gas supply agreement for a data center, positioning the company as a key energy provider for the rapidly growing AI and cloud computing sector.

With an extensive infrastructure of over 105,000 miles of natural gas pipelines and a storage capacity of nearly 236 billion cubic feet, Energy Transfer is well-equipped to meet the energy needs of data centers. Many of these facilities are being developed near its vast pipeline network, ensuring reliable and scalable energy delivery. The company is also engaged in discussions with multiple data center developers and expects this to be the first of many agreements to supply, store, and transport natural gas to power data centers, electric generation facilities, and other high-demand customers across its nationwide footprint.

Cynthia Thompson, Executive Chair of CloudBurst Data Centers, expressed confidence in the partnership, highlighting Energy Transfer’s infrastructure capabilities. “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 near their strategic natural gas pipeline network, using our proprietary site selection software,” she stated.

As AI and cloud computing drive an increasing demand for energy, large-scale data centers require reliable and efficient power solutions. Energy Transfer’s move into this space underscores its ability to adapt to emerging market needs while leveraging its existing infrastructure. This collaboration not only strengthens its role in the evolving energy landscape but also opens new opportunities to support the next generation of technology-driven industries.

Energy Transfer LP operates one of the most extensive and diverse energy asset portfolios in the United States, managing over 130,000 miles of pipelines and related infrastructure. Its strategically positioned network spans 44 states, covering all major U.S. production basins.

As a publicly traded limited partnership, Energy Transfer focuses on natural gas midstream services, as well as intrastate and interstate transportation and storage. Additionally, the company handles crude oil, natural gas liquids (NGL), and refined product transportation and terminaling, along with NGL fractionation.