Energy Transfer’s Oasis Pipeline will provide as much as 450,000 million British thermal units per day of natural gas to supply CloudBurst’s data center campus.

Under the agreement, Energy Transfer will supply CloudBurst’s data center in San Marcos with up to 450,000 metric million British thermal units (MMBtu) of firm natural gas per day. MMBtu is a unit used to measure heat content or energy value.

A data center geared toward serving artificial intelligence companies is being planned for the San Marcos area — and it will be powered by natural gas. The Dallas-based company Energy Transfer LP announced Monday that it has entered an agreement to supply up to 450,

Energy Transfer enters into long-term natural gas supply agreement with CloudBurst Data Centers, its first commercial arrangement to supply natural gas directly to a data center.

A new federal approval to fast-track gas plants in data center markets comes amid a barrage of natural gas-powered data center campuses moving forward.

Energy Transfer (ET) stock rose 2.1% on Monday after the company signed a natural gas supply agreement with Denver-based CloudBurst Data Centers. The Dallas-based midstream firm said that under the agreement,

Energy Transfer will provide up to 450,000 million British thermal units per day of firm natural gas through its Oasis Pipeline to CloudBurst's campus outside of San Marcos, Texas, contingent upon the data center operator reaching a final investment decision (FID) with its customer.

As a leading natural gas pipeline operator, Energy Transfer ( ET -1.39%) is in an excellent position to capitalize on the expected AI-powered surge in gas demand. The company recently took its first step to cash in on growing gas demand from data centers. Here's a look at the deal and the company's gas-fueled growth potential.