Pipeline giants Energy Transfer and Williams Companies. are in discussions with data center operators about supplying natural gas directly to their facilities to fuel on-site power plants, driven by the growing demand for power from artificial intelligence (AI), computer chip manufacturing, and electric vehicles.
The utilities sector is anticipating a significant surge in power demand, marking the largest increase in a generation. While renewable energy sources like wind and solar will contribute to this demand, a substantial portion will still rely on gas-fired plants, according to Rigzone.
Energy Transfer co-CEO Marshall McCrea highlighted the potential for the company, noting that they are in talks with various data centers, many of which are interested in generating power on-site to ensure a reliable and quickly obtainable gas supply. The company is also exploring expansions at existing plants and new connections to serve additional power plants.
Similarly, Williams Cos. is engaged in discussions to supply gas directly to data centers, particularly in the southeastern U.S. and the mid-Atlantic regions. Williams’ CEO Alan Armstrong mentioned that the company is experiencing an overwhelming number of requests from data centers, as they navigate and evaluate these projects, Rigzone reported.
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