Woodway Energy Signed Pipeline Deal for Texas Data Center
The firm will build a 22-mile natural gas pipeline to fuel a behind-the-meter power project in Texas.
Updated on Sept. 23, 2026 in Data Centers
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Woodway Energy Infrastructure has signed definitive agreements to construct a 22-mile natural gas pipeline in Texas. This project aims to provide reliable fuel to a behind-the-meter power generation site designed to support data center energy needs.
Why it matters
By utilizing behind-the-meter power generation, developers can circumvent traditional grid interconnection delays that currently hinder the rapid expansion of data centers. The project offers fuel supply certainty for facilities that require consistent, high-capacity energy to remain operational.
The planned infrastructure consists of a 22-inch diameter natural gas pipeline spanning 22 miles. This system is engineered to deliver fuel directly to a behind-the-meter power generation plant.
The players
Woodway Energy Infrastructure
This company develops and operates energy assets, including pipeline systems and infrastructure projects tailored for industrial energy consumers.
ERCOT
The Electric Reliability Council of Texas manages the flow of electric power to more than 26 million Texas customers and oversees grid interconnection queues.
The details
Woodway Energy Infrastructure will own and operate the pipeline to meet specific customer requirements for energy supply. The strategy allows for independent power production, effectively decoupling the facility from broader grid capacity constraints.
Timeline
The pipeline is scheduled to enter commercial service in the first half of 2028.
The Tech Race
As data centers face unprecedented power demands, industry players are increasingly shifting toward dedicated, behind-the-meter generation to bypass existing grid bottlenecks. This transition represents a departure from traditional reliance on public utility connections for massive energy loads.
For the average resident, these behind-the-meter projects may reduce the strain on the public electric grid by allowing massive industrial consumers to generate their own power. However, the surge in energy demand from such facilities can impact local fuel supply infrastructure and regional grid planning.
The takeaway
The move reflects a broader trend of private energy infrastructure development as data centers attempt to outpace the speed of traditional utility upgrades. Readers should monitor how these private lines influence local energy prices and resource availability in their specific regions.
Further reading
Learn more about energy demand in the Data Centers section.
Source note: This article includes information reported by W.
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Should local infrastructure be prioritized to power private data centers over the public energy grid?
