New $4.2 Billion Texas Gas Pipe to Supply Fuel for Data Center

Kinder Morgan Inc. formally committed to building a $4.2 billion pipeline that will haul fuel across West Texas and the Panhandle to help power a data center complex.

The project dubbed Permian Link will have a capacity to ship 2.8 billion cubic feet of gas daily across a 434-mile (700-kilometer) expanse, according to a statement Wednesday.

Kinder counts an unnamed “A-list hyperscaler” as a major customer for the network, which is expected be in-service in late 2030, the statement said.

The pipeline will capture a “compelling opportunity” by moving cheap Permian Basin gas north to emerging data center clusters in the Panhandle, Kinder Chief Executive Officer Kim Dang said during a conference call with analysts.

Permian Link is the latest giant Texas pipeline to reach a final investment decision in recent months amid booming demand for power to run data centers and supply export terminals.

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While Kinder is looking to accommodate multiple customers with Permian Link, the unnamed hyperscaler is the anchor tenant and “obviously is driving the need for speed,” said Sital Mody, president of natural gas pipelines.

Separately, the company greenlit the 470-mile Southeast Connector pipeline that will haul as much as 2.6 billion cubic feet of gas daily.