ET, CloudBurst Sign NatGas Supply Deal for Data Center
2/10 8:41 AM
ET, CloudBurst Sign NatGas Supply Deal for Data Center
OAKHURST, N.J. (DTN) --- Energy Transfer announced today that it has
entered into a long-term agreement with Denver-based CloudBurst Data Centers to
provide natural gas to CloudBurst's flagship AI-focused data center development
in Central Texas.
The agreement calls for Energy Transfer's Oasis Pipeline 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 FDI 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 FDI later this year and in such event the facility
would be operational in the third quarter of 2026.
This represents Energy Transfer's first commercial arrangement to supply
natural gas directly to a data center. 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.
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