Aug. 5 at 11:07 PM
$ET During Energy Transfer's recent earnings call, management said they are in advanced negotiations with multiple customers across several states to provide natural gas infrastructure for power generation, primarily supporting AI data centers and other large industrial loads.
This is significant for several reasons:
Broader opportunity than previously thought. Earlier speculation centered on Texas, but "several states" suggests ET's pipeline network across the Midcontinent, Gulf Coast, and Southeast is generating interest.
Multiple customers. This isn't a single large project. It implies ET has a pipeline of potential contracts, reducing reliance on any one deal.
Advanced negotiations. Companies generally use this language when discussions have progressed beyond preliminary talks, though it does not guarantee contracts will be signed.
Large-volume demand. AI data centers often require dedicated gas-fired power plants ranging from hundreds of megawatts to several gigawatts.
