(Calgary) TC Energy wants to capitalize on the rapid proliferation of data centers in North America.
The Calgary-based pipeline company said Thursday it is uniquely positioned to capitalize on the rapid expansion of power-hungry data centres being built by companies like Microsoft, Google and Amazon to power the artificial intelligence revolution.
Executive vice-president and chief operating officer Stan Chapman told analysts on a conference call that of the more than 300 data centers currently under construction or proposed in the United States, more than 60% are located within 15 miles of TC Energy’s existing natural gas pipeline network.
“We’re seeing a shift in site preferences (for data centers) from areas where there’s large telecommunications infrastructure in place to areas where there’s energy and supply infrastructure in place,” Chapman said, adding that a growing number of data center operators want to build their own power generation capacity on site to meet their needs.
There is great potential for these operators to connect to TC Energy’s pipeline network, not only in the United States, but also in Mexico and Canada, he argued.
“Our best-in-class footprint doesn’t limit the opportunities to the U.S. alone,” Chapman added. “In Canada, there are about 300 data centers operating today. We could see this [demande d’énergie] increase by one to two gigawatts before the end of the decade.”
TC Energy, which reported second-quarter net income of $963 million, up from $250 million in the same quarter last year, is optimistic about the future of natural gas.
Demand for the product is expected to grow, CEO Francois Poirier said, citing growth in the liquefied natural gas (LNG) industry in North America, as well as increased demand to support large-scale electrification, coal-fired power plant retirements and emerging energy needs.
Earnings were 93 cents per share for the quarter ended June 30, compared with 24 cents per share in the same quarter last year. The increase in earnings was partly due to the impact in the prior-year quarter of a large loss in the Canadian natural gas pipeline business.
Adjusted profit was $978 million, down slightly from $981 million in the same quarter last year. Revenue was $4.09 billion, up from $3.83 billion a year earlier. The company declared a dividend of 96 cents per common share, up from 93 cents a year ago.