The two largest pipeline operators in the U.S. are poised to benefit from the data center boom as rising natural gas demand requires billions of dollar of infrastructure investment, according to Goldman Sachs.
To satisfy power users, the data center boom could drive $7.4 billion in pipeline investments to boost capacity by 6.1 bcf/d through 2030.
Goldman currently rates Kinder Morgan as buy with a stock price target of $20, implying 8% upside from Friday's close of $18.57.
Williams Companies' market share stands at 33%, with strong exposure in the Southeast, including the nation's largest data center market in Northern Virignia.
The company is the largest natural gas producer in the U.S., responsible for about 6% of total production.
Persons:
Goldman Sachs, Kinder Morgan, Williams, KMI, Goldman, — CNBC's Michael Bloom
Organizations:
Goldman, Williams Companies, Williams, EQT Corp
Locations:
U.S, Texas, Northern Virignia