Energy Transfer and CloudBurst Data Centers have signed a long-term agreement to supply natural gas to an AI-focused data center in Texas. The contract will supply CloudBurst’s campus outside San Marcos with up to 450,000 MMBtu of natural gas per day.
The alliance between Energy Transfer and CloudBurst
The gas will be transported via Energy Transfer’s Oasis Pipeline , ensuring a stable supply of energy sufficient to generate up to 1.2 gigawatts of direct, or ” behind-the-meter ,” electricity. This energy supply will extend for at least 10 years and is subject to CloudBurst’s final investment decision ( FID ), expected later this year. If completed, the facility will begin operations in the third quarter of 2026.
This agreement marks Energy Transfer’s first commercial commitment to supply natural gas directly to a data center to improve its energy sources, positioning the company in a sector with growing energy demand.
The company operates a vast network of more than 105,000 miles of pipelines and storage with a combined capacity of 236 billion cubic feet, allowing it to ensure reliable supply. It is also in discussions with other data center developers, suggesting future strategic alliances.
We are very excited about our close relationship with Energy Transfer and have full confidence in their ability to provide redundancy through their extensive pipeline network and storage capacity. In addition, we will work closely with Energy Transfer to identify potential additional data center sites on or near their strategic natural gas pipeline network using our proprietary site selection software.
Cynthia Thompson, CEO of CloudBurst Data Centers.
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Source and photos: Energy Transfer via BusinessWire
