Energy Transfer vs. Williams Companies: Which Natural Gas Giant Wins the AI Power Buildout?
The two pipeline giants will both benefit from the AI boom.
Overview
Energy Transfer (NYSE: ET) and The Williams Companies (NYSE: WMB) are two of the largest midstream companies in the United States. Energy Transfer operates more than 140,000 miles of pipeline in 44 states, while Williams owns over 32,000 miles of pipeline in 24 states. Both companies are well-insulated from volatile commodity prices because they merely charge upstream and downstream companies "tolls" to use their infrastructure.
According to the International Energy Agency (IEA), natural gas accounts for more than 40% of the grid electricity consumed by U.S. data centers. Since Energy Transfer and Williams transport massive amounts of natural gas through their pipelines, they're both benefiting from the rapid growth of the power-hungry cloud infrastructure and AI markets. However, one of these companies clearly has more exposure to the AI power build-out than the other.
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Originally published at www.fool.com.