Energy Transfer has received requests to connect with roughly 45 gas-powered plants in 11 states they don’t already serve, in a reflection of the surging demand for electricity from AI and data centers, the company said during their Q3 earnings call.
Those requests could consume gas loads of up to 6 Bcf/d. The Dallas-based company has also had requests from over 40 prospective data centers in 10 states, which could use gas loads of up to 10 Bcf/d. Many of these developers are still working to determine optimal locations (see Where You Lead I Will Follow) and are seeking information on pipeline proximity and cost to connect.
Energy Transfer said it currently serves about 185 gas-fired power plants in 15 states, through direct or indirect gas pipe connections. Of those, it’s already seeing a greater pull from electricity needs driven by AI, data center and power plant growth. And the increase in demand for more connections has come since their last earnings call.
To support operations and increase system reliability for the company as well as its Texas customers, Energy Transfer has begun building eight, 10-megawatt natural gas-fired electric generation facilities. The first is expected to be in service in Q1 2025, with the rest set to be up throughout 2025 and 2026. The company is also pursuing expansions at currently connected plants for potential additional gas loads of over 1 Bcf/d.
