Energy Transfer and CloudBurst Sign Agreement for Natural Gas Supply to Data Center Project in Central Texas
10 February 2025 - 11:30PM
Business Wire
Gas Supply Expected to Generate Up to 1.2
Gigawatts of Direct Power to AI-Focused Data Center
Energy Transfer LP (NYSE: ET) today 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.
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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.
For more information, please visit CloudBurst’s website at
www.cloudburstdc.com or contact Cynthia Thompson, Executive Chair,
cthompson@cloudburstdc.com or Roy Davis, President,
rdavis@cloudburstdc.com.
Forward-Looking Statements
This news release may include certain statements concerning
expectations for the future that are forward-looking statements as
defined by federal law. Such forward-looking statements are subject
to a variety of known and unknown risks, uncertainties, and other
factors that are difficult to predict and many of which are beyond
management’s control. An extensive list of factors that can affect
future results, including factors that may impact Energy Transfer’s
operations, capital projects and future growth, are discussed in
its Annual Report on Form 10-K and other documents filed from time
to time with the Securities and Exchange Commission. Energy
Transfer and CloudBurst undertake no obligation to update or revise
any forward-looking statement to reflect new information or
events.
The information contained in this press release is available on
our website at energytransfer.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20250207943457/en/
Energy Transfer Contacts:
Media Relations Vicki Granado or
Jeff Tieszen 214-840-5820 media@energytransfer.com
Investor Relations Bill Baerg,
Brent Ratliff or Lyndsay Hannah 214-981-0795
CloudBurst Contacts: Cynthia Thompson Executive Chair
& CBDO, cthompson@cloudburstdc.com 713-443-7170
Roy Davis, President & CMO rdavis@cloudburstdc.com
702-358-3929
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