TC Energy has just approved a $900 million natural gas pipeline to help support growing data center power demand in the Midwest.
Known as Northwoods, the project is an expansion of the ANR pipeline and will add almost 120,000 MWh of new capacity. The project is expected to come online in late 2029.
Why is this important? Data centers are power hungry, and they are ramping up rapidly in the Midwest. Tax incentives and cooler climates make this region a good place for scaling large data centers.
But there is a growing gap between power demand and supply. While we wait for next generation technologies to catch up, dispatchable natural gas is still the best near-term solution for avoiding power shortages.
