Jackson Walker announces the representation of CloudBurst Data Centers, Inc. in a significant long-term agreement with Energy Transfer LP (NYSE: ET) to supply natural gas for an AI-focused data center development in Central Texas.

As part of the agreement, Energy Transfer’s Oasis Pipeline, LP will provide up to 450,000 MMBtu per day of firm natural gas supply to CloudBurst’s Next-Gen Data Center campus located outside of San Marcos, Texas. The natural gas supply will generate up to approximately 1.2 gigawatts of direct, “behind-the-meter,” electric power for a period of at least 10 years, starting with Phase 1 of the data center facilities. CloudBurst expects to reach a final investment decision later this year, with the facility anticipated to be operational by Q3 of 2026.

This agreement marks Energy Transfer’s first commercial arrangement to supply natural gas directly to a data center, highlighting the strategic importance of this partnership. Energy Transfer’s extensive network of more than 105,000 miles of natural gas pipelines and storage facilities will ensure a reliable supply of natural gas crucial for the data center’s operations.

Jackson Walker’s team, led by Jesse S. Lotay, Pamela Madere, and Amy Baird, provided comprehensive legal counsel to CloudBurst throughout the negotiation and finalization of this agreement. For more information, view the press release.

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Jackson Walker has been the counsel of choice on complex matters involving the energy and natural resources industry for over a century. Our Energy and Land Use attorneys have the skills and experience to provide high levels of service to our energy clients in a broad range of diverse specialties, including acquisitions and dispositions, administrative and regulatory, commodities and derivatives, electricity, finance, site selection, permitting, land use issues, intellectual property, litigation, tax, workouts and reorganizations, and many other practice areas. We have represented clients before the United States Supreme Court and other federal and state courts, the EPA, TCEQ, the Texas Railroad Commission, the Texas Legislature, and almost every City and County in Texas. To explore our experience representing data center clients in natural gas supply and land use agreements, visit the Energy, Data Center, and Land Use practice pages.