Midstream’s Big Opportunity: Powering the Data Center Boom

The Week That Was: February 28 - March 7, 2025

NOTE: “The Week That Was” is a recap of ideas shared over the last seven days.

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What got my attention in 𝙏𝙝𝙚 𝙒𝙚𝙚𝙠 𝙏𝙝𝙖𝙩 𝙒𝙖𝙨?

With the capital flowing into the data centers boom, everyone wants a piece of the action. And with that focus we have seen a surge of interest in gas fired power generation. Midstream serves that need and is poised to benefit.

• Williams is investing $16 billion in gas-to-power projects, leveraging its infrastructure to support growing demand for flexible, lower-carbon energy. For gas producers supply gas into these pipeline systems, the question remains: "𝗛𝗼𝘄 𝗰𝗮𝗻 𝘁𝗵𝗲𝘆 𝗴𝗲𝘁 𝗮 𝘀𝗵𝗮𝗿𝗲 𝗼𝗳 𝘁𝗵𝗲 𝗲𝗰𝗼𝗻𝗼𝗺𝗶𝗰𝘀 𝗳𝗿𝗼𝗺 𝘀𝘂𝗽𝗽𝗹𝘆𝗶𝗻𝗴 𝗴𝗮𝘀 𝘁𝗼 𝗽𝗼𝘄𝗲𝗿 𝗱𝗮𝘁𝗮 𝗰𝗲𝗻𝘁𝗲𝗿𝘀?"

• Could tariffs be a tailwind for LNG demand? 𝗗𝗮𝘁𝗮 𝗰𝗲𝗻𝘁𝗲𝗿𝘀 𝗵𝗮𝘃𝗲 𝗮 𝗰𝗼𝗼𝗹𝗶𝗻𝗴 𝗽𝗿𝗼𝗯𝗹𝗲𝗺 (you need to dissipate a lot of heat). LNG regas has "cold energy" and can act as heat sink while also providing feedstock for gas-fired power generation. The result is a number of 𝗲𝘅𝗮𝗺𝗽𝗹𝗲𝘀 𝗼𝗳 "𝗟𝗡𝗚-𝗰𝗼𝗼𝗹𝗲𝗱 𝗱𝗮𝘁𝗮 𝗰𝗲𝗻𝘁𝗲𝗿𝘀" 𝗯𝗲𝗶𝗻𝗴 𝗰𝗼𝗻𝘀𝗶𝗱𝗲𝗿𝗲𝗱 𝗶𝗻 𝗶𝗺𝗽𝗼𝗿𝘁 𝗰𝗼𝘂𝗻𝘁𝗿𝗶𝗲𝘀.

• More Capacity ≠ More Gas Burn. With all the excitement about gas fired generation capacity coming on, mostly connected with data center buildouts, it’s 𝗲𝗮𝘀𝘆 𝗮𝘀𝘀𝘂𝗺𝗲 𝘁𝗵𝗮𝘁 𝗺𝗲𝗮𝗻𝘀 𝗮 𝗹𝗼𝘁 𝗺𝗼𝗿𝗲 𝗴𝗮𝘀 𝗯𝘂𝗿𝗻. 𝗧𝗵𝗮𝘁'𝘀 𝗮 𝗿𝗶𝘀𝗸𝘆 𝗮𝘀𝘀𝘂𝗺𝗽𝘁𝗶𝗼𝗻.

𝗪𝗵𝗮𝘁 𝘄𝗲𝗿𝗲 𝘁𝗵𝗲 𝗺𝗼𝘀𝘁 𝗶𝗻𝘁𝗲𝗿𝗲𝘀𝘁𝗶𝗻𝗴 𝘀𝘁𝗼𝗿𝗶𝗲𝘀, 𝗶𝗱𝗲𝗮𝘀 𝗮𝗻𝗱 𝗯𝗲𝘀𝘁 𝗰𝗼𝗻𝘁𝗲𝗻𝘁 𝘆𝗼𝘂 𝘀𝗮𝘄 𝘁𝗵𝗶𝘀 𝘄𝗲𝗲𝗸? Please share in the comments for all of us!

Have a great week!

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