Everyone is focused on data centers and generation. Nobody is talking… | Ryne Ogren | 31 comments

Ryne Ogren
Ryne Ogren
Verified Source
2026-03-03 2 min read
**Key Insight:** The article highlights the importance of midstream infrastructure in the energy transition towards AI and data centers.

Everyone is focused on data centers and generation.
Nobody is talking about the middle.

Midstream is the reason this whole thing works.

And it's the reason a lot of projects are going to fail.

Natural gas is powering the AI revolution. Over 60% of new data center power is expected to come from gas-fired generation.

That gas has to travel from production areas to power plants through pipelines. That's midstream.

S&P Global said it directly this January:
"U.S. midstream will focus on investment and expansion in 2026, notably driven by data centers and AI."

Midstream companies are now signing direct deals with data center developers and power generators.
They're building new pipeline laterals specifically to serve AI campuses.

Even behind-the-meter gas turbines need gas delivered via pipeline. There is no version of this industry that doesn't run through midstream.

The developers who understand this are positioning near pipeline infrastructure before the market catches up.

Follow for more on how this industry actually works.

*This picture is AI generated*

GasGx Editorial Insight
**Key Insight:** The article highlights the importance of midstream infrastructure in the energy transition towards AI and data centers.

**Body Paragraph 1: Analysis of the market/tech situation**
The article emphasizes that while data centers and generation are the focus of many projects, the midstream plays a crucial role in ensuring the efficient movement of natural gas from production to power plants. This is particularly important as over 60% of new data center power is expected to come from gas-fired generation. Midstream companies are now signing direct deals with data center developers and power generators, building new pipeline laterals specifically to serve AI campuses. This indicates a shift in focus from traditional power generation to the more efficient use of natural gas for data centers.

**Body Paragraph 2: The specific operational implication**
The implications of this shift are significant for gas plant operators. As the demand for data centers grows, so does the need for efficient and reliable midstream infrastructure. This means that operators must invest in new pipelines and other infrastructure to ensure that their gas can be delivered to power plants and data centers efficiently. This could lead to increased costs for operators, but it also presents an opportunity to differentiate themselves in the market by offering superior midstream services.

**GasGx Take:** To address these challenges, GasGx offers its "GasGx LCOE Calculator" which allows operators to accurately forecast their levelized cost of energy (LCOE) for various scenarios. This tool helps operators make informed decisions about where to invest their resources, ensuring that they are maximizing their profits while minimizing their risks. Additionally, GasGx's "Smart Monitoring System" provides predictive alerts for any potential issues with midstream infrastructure, allowing operators to proactively address any problems before they become major issues.

**Recommended SEO Tags:** "Data Center Power Generation", "Midstream Infrastructure", "Natural Gas", "AI Revolution", "Pipeline Laterals", "Levelized Cost of Energy", "Predictive Alerts"
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