Venture Global Wants to Be an "AI Utility." Its 10-Gigawatt Plan Still Needs Customers.

Hyperscalers are allocating vast sums towards data center construction, but they are constrained by a scarcity of electricity. This situation creates potential for companies like Venture Global, a major LNG exporter, to step in and provide the necessary power. Venture Global plans to expand its footprint by acquiring 10 gigawatts (GW) of data center compute capacity over the next ten years via modular power islands.

The company has established framework agreements with equipment suppliers, but it still needs to finalize deals with major hyperscalers. Venture Global's unique model involves exporting U.S. shale gas globally, and it has adopted a more streamlined approach by utilizing smaller, prefabricated liquefaction trains. This strategy also allowed the company to develop 4.5 GW of in-house gas-fired power generation capacity, which proved instrumental in their pivot to an AI utility.

Through 16 combined-cycle power islands by 2034, Venture Global aims to supply the power needed for these data centers. The company's advantage lies in controlling the natural gas pipeline interconnects and related logistics, enabling it to deliver both the power islands and the fuel they require. Venture Global's pivot to an AI utility capitalizes on the shale boom's glut of natural gas, which it can sell to its data center customers at better margins if energy demand remains robust.

The company has secured framework agreements with GE Vernova for gas turbines and power equipment, as well as Baker Hughes for systems and controls, all set to operate from 2028 to 2034. Venture Global is expected to convert its first reservation into a binding order by the end of this year, with power generation projected to commence in 2028 to 2029.

Despite the high upside potential, Venture Global's pivot also carries significant risks, as it heavily invests in constructing these power islands and depends on strong customer commitments from hyperscalers.