Energy Transfer has contracted with Denver-based CloudBurst Data Centers to provide natural gas to CloudBurst’s AI-focused data center development in Central Texas. Its Oasis Pipeline will provide up to 450,000 MMBtu per day of firm natural gas supply to CloudBurst’s campus outside of San Marcos, Texas,

Subject to CloudBurst reaching a final investment decision (FID) with its customer. The natural gas supply would generate up to approximately 1.2 GW 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 be operational in Q3 of 2026.

Energy Transfer is positioned to provide reliable natural gas supply crucial to several  data center operations under development. Many of them are near its network of over 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.

“We are 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.