Natural gas becomes a "hot commodity" in the AI era! Energy Transfer (ET.US) signs gas supply agreement with Texas AI data center.

American pipeline operator Energy Transfer (ET.US) will directly supply natural gas to CloudBurst Data Centers to meet the surge in electricity demand brought by artificial intelligence (AI). In a statement on Monday, Energy Transfer said its Oasis Pipeline, LP will deliver up to 450,000 million British thermal units of natural gas per day to power the CloudBurst data center campus located on the outskirts of San Marcos, Texas. This pipeline will bypass the existing grid and deliver power directly to the data center. Natural gas plant operators, producers, and pipeline companies are vying for opportunities to meet the energy demands of artificial intelligence. Natural gas power plants have become the most competitive power solution because they are cheaper and faster to build than reactors, and unlike wind and solar energy, they can operate around the clock. According to the statement, this deal marks the first long-term direct supply agreement of natural gas between Energy Transfer and a data center. The company plans to supply natural gas to more data centers. The natural gas supply is expected to generate 1.2 gigawatts of power, with a lifespan of at least 10 years. This is typically enough to power around 240,000 households in the state. The two companies expect the facility to be operational by the third quarter of 2026. It is reported that CloudBurst is designed, built, and operates energy infrastructure for artificial intelligence. As of the closing of the U.S. stock market on Monday, Energy Transfer was up 0.8%. The stock has risen 4.2% year-to-date.