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Pipeline giants Energy Transfer LP and Williams Cos. are talking to data center operators about building pipelines directly to their facilities to fuel on-site power plants as the centers prepare for a boom in artificial intelligence.
Utilities are bracing for the largest increase in power demand in a generation due to data centers for AI, computer-chip factories and a growing number of electric vehicles. Some of that additional power will come from wind and solar. But a significant portion will be from gas-fired plants. And companies that run data centers want to make sure that that gas will be available — and quickly obtainable — when they need it.
Energy Transfer is in discussions with data centers of different sizes, many of which want to generate power on site, Co-Chief Executive Officer Marshall McCrea said in a call with analysts Wednesday afternoon.
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