Woodway Energy to Build 22-Mile Natural Gas Pipeline for Hyperscale Data Center

Woodway Energy Infrastructure has signed definitive agreements to develop, own, and operate a 22-mile natural gas pipeline designed to fuel a new hyperscale data center project, the company announced.

The 30-inch dedicated pipeline will supply natural gas directly to a behind-the-meter power generation facility serving the data center.

While Woodway did not disclose the project's exact location or the customer's identity, the developer’s existing asset portfolio is concentrated in Texas, pointing to a likely project site within the state.

Scheduled to enter commercial service in the first half of 2028, pending regulatory reviews and approvals, the pipeline is engineered to meet the client’s specific capacity requirements while allowing room for future expansion.

"This project demonstrates Woodway’s ability to rapidly deliver large-scale, purpose-built natural gas infrastructure for customers with demanding safety, reliability, and capacity requirements," said Diaco Aviki, chief executive officer of Woodway Energy Infrastructure.

"By working closely with our customers, we can develop pipeline solutions that address their specific needs and provide the fuel supply certainty required to support their growth."

Behind-the-meter generation allows major energy consumers to bypass lengthy grid interconnection delays by generating electricity on-site.

Demand for off-grid power solutions has surged in Texas, particularly around the energy-dense Permian Basin, as data center developers race to secure reliable power.

Grid constraints have driven a flurry of similar developments across the state. In June, Microsoft Corp. partnered with Chevron Corp. to construct an on-site generation facility for its Project Kilby site in West Texas.

Separately, developer PowerPlay announced plans in August to build a 400-megawatt behind-the-meter artificial intelligence data center near Abilene.

The surge in private power pipelines highlights the growing strain on the state's main electrical grid. The Electric Reliability Council of Texas, which operates the grid covering most of the state, reported in June that it was tracking 438 gigawatts of large-load connection requests.

Data centers account for nearly 89 percent of those pending grid requests, pushing tech companies to seek dedicated pipeline infrastructure to secure their power needs.