Enbridge is well-positioned to fuel North America’s rapidly escalating data center and AI needs
Power demand is now surging across North America, after nearly two decades of stagnation or decline. And the soaring energy needs of data centers have emerged as a primary catalyst—followed by electrified cooking, heating and transportation.
An evolution of the computer rooms of the past, data centers now house the equipment that powers our social networks, e-commerce platforms and video streaming services. They also serve as the hub for managing and operating Artificial Intelligence. Processing such vast amounts of data requires significant energy—lots of it. For instance, AI systems from OpenAI and Meta consume about 30 megawatts of electricity at any given moment, roughly equivalent to the energy needs of 30,000 homes.
Enbridge is well-positioned to take advantage of these escalating energy needs and data center buildouts—to provide the baseload power that will support the 24/7, always-on needs of technology, whether that’s from natural gas or renewable energy.
“I think you’ll see some big-tech data center (clients) signing up with us. They want to work with big players and they also want to see differentiated opportunities, whether it’s solar, wind (or natural) gas,” Enbridge President and CEO Greg Ebel recently said during an Enbridge earnings call.
“I think we’re in a good spot to be able to provide, in different jurisdictions, multiple offerings. And we’re a big player. They know we are going to get things done.”
Ebel said Enbridge is well positioned to take advantage of the rising demand, thanks to its stature as North America’s premier energy infrastructure company and its diverse array of core businesses.
An all-around competitive advantage
At present, a pitched competition is unfolding among technology companies to build the infrastructure and secure power. Data center builders and operators have prioritized jurisdictions that have sufficient energy, water and friendly local governments.
Gas-fired power plants have emerged as the most competitive solution, offering faster build times than nuclear reactors, and the ability to run continuously. More than 200 gas-fired power plants are currently in development across the U.S.
Ebel says demand for natural gas through 2040 is expected to grow by double digits, with North American natural gas opportunities totaling as much as 65 billion cubic feet per day (Bcf/d) in that span.
At the same time, many tech businesses want to balance that reliability with their own renewable energy goals and commitments.
Powering data centers aligns with Enbridge’s core business units in Gas Distribution, Gas Transmission, and Renewable Power. With a vast infrastructure network and over seven decades of experience supplying energy to communities, Enbridge offers a strong competitive advantage to future customers.
Gas Transmission:
Gas Distribution:
Renewable Power:
- Strong corporate demand for data center buildout and the need to meet net-zero commitments have contributed to 30% YoY growth for the business unit.
- Enbridge is increasingly attractive to blue-chip Fortune 50 companies as we can provide reliability but also renewable credits.
- “All of our power is fully contracted . . . the most high-quality, blue-chip counterparties. And so what we’re seeing on our side is, frankly, opportunity.”—Matthew Akman, Enbridge Executive Vice President, Corporate Strategy and President, Power
While data centers have existed for more than 20 years, AI has only recently emerged as a breakthrough technology. In the past two years, its impact has surged, with a clear consensus on power demand emerging just in the last year.
This transformative technology is expected to radically reshape global economies, national security, and geopolitical power dynamics, sparking a race to claim its rewards.
As the pace of discovery and development intensifies, the need for partners who can navigate uncertainty has never been greater—and Enbridge is ready to lead the way.
