A data center in Ashburn, Virginia. Utilities are bracing for the biggest surge in electricity demand in a generation, driven by data centers for AI, computer chip factories and electric vehicles. (Nathan Howard/Bloomberg News)
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Pipeline giants Energy Transfer and Williams Cos. are currently negotiating with data center operators to build pipelines directly to their facilities to supply energy to on-site power plants as the centers prepare for a boom in artificial intelligence.
Utilities are bracing for the biggest surge in electricity demand in a generation, driven by artificial intelligence data centers, computer chip factories and a growing number of electric vehicles. Some of that extra power will come from wind and solar. But a significant portion will come from gas-fired power plants. And companies that run data centers want to make sure gas is available — and available quickly — when they need it.
Energy Transfer is in talks with data centers of varying sizes, many of which want to generate power on-site, co-CEO Marshall McCrea said in a conference call with analysts on August 7.
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“This is a tremendous opportunity for us,” McCrea said.
Energy Transfer ranks 60th on Transport Topics’ Top 100 list of the largest private transportation companies in North America.
Energy Transfer is seeking expansions at already connected plants and is in talks to supply power plants with new connections, according to a company presentation.
Rival pipeline company Williams is also in talks about supplying gas directly to data centers, particularly in the southeastern United States and the Mid-Atlantic region.
“We’re honestly pretty overwhelmed by the volume of requests we’re processing and trying to understand these projects,” CEO Alan Armstrong said on a conference call with analysts this week.
