Energy and power providers expand to meet AI data center demand

Energy infrastructure and power providers are positioning themselves to meet the rising electricity demands of the artificial intelligence data center boom.

Energy Transfer is expanding its midstream operations in the United States, focusing on natural gas infrastructure. The company recently launched the Hugh Brinson Pipeline to transport natural gas from the Permian Basin to markets in Texas and beyond, supporting growing data center needs. Energy Transfer expects to allocate up to $5.9 billion toward growth capital expenditures this year.

Constellation Energy, which operates the largest nuclear fleet in the U.S., is also securing significant power deals with hyperscalers. These include a 20-year power purchase agreement with Microsoft to restart the Three Mile Island facility, now known as the Crane Energy Center. Other agreements involve Comcast and Bank of America. While these deals support long-term growth, the company faces regulatory timelines from entities such as the Federal Energy Regulatory Commission (FERC) and regional grid operators.