Energy Transfer Secures Gas Deals for AI Data Centers

Energy Transfer is expanding its natural gas infrastructure to support the growing energy requirements of artificial intelligence data centers. The company secured agreements with Oracle to supply natural gas to three data centers, including two in Texas, providing approximately 900,000 Mcf per day. Additionally, the company signed a 20-year agreement with Entergy Louisiana to deliver 250,000 MMBtu per day starting in December 2028, which will power a Meta Platforms data center in Richland Parish, Louisiana.

Over the past year, the company has contracted more than 6 billion cubic feet per day of new pipeline capacity, which is expected to generate over $25 billion in future revenue. To maintain competitiveness against rivals such as Targa Resources and Enterprise Products Partners for Permian natural gas liquids, Energy Transfer is evaluating the conversion of one of its NGL pipelines to natural gas service. This strategic shift could double the revenue for that specific asset and reduce capital expenditures by up to $1 billion.