Wisconsin is emerging as a hot growth market for natural gas, backed by a burgeoning data center industry. Two major pipeline projects are set to reshape Midwest gas flows to supply increasing demand in the Upper Midwest.
TC Energy’s (TRP) Wisconsin Reliability Project (WRP) on ANR Pipeline and DT Midstream’s (DTM) Guardian 3 expansion of Guardian Pipeline together will add ~680 MMcf/d of deliverability between the Chicago hub and Wisconsin.
WRP expands the ANR mainline by 144 MMcf/d through a combination of pipeline replacement and facility upgrades. The project replaces 51 miles of pipe with larger steel and installs hybrid electric/gas compressors at the Kewaskum and Weyauwega compressor stations to boost reliability and flexibility. TC Energy started construction in late 2024 and placed the $700MM expansion in service on Nov. 1. The project is backed by 10-year contracts with several utilities and local distribution companies, including North Shore Gas, Wisconsin Electric Power, Wisconsin Public Service, and Wisconsin Power and Light.
DT Midstream also recently upsized its Guardian 3 expansion after receiving strong interest in an open season. DTM awarded around 328 MMcf/d to five shippers following a binding open season in September. Including previous commitments made in July, the total planned expansion reaches ~540 MMcf/d, or a 40% increase of Guardian’s current capacity. The 260-mile Guardian Pipeline already serves major load centers from the Chicago hub into Wisconsin.
The Upper Midwest is a growing focus of data center developers. In the Data Center Demand Tracker, East Daley Analytics is monitoring about 16 GW of announced data center projects across Wisconsin and Illinois from prominent technology companies like Microsoft (MSFT) and Meta (META). These projects could potentially create up to 1 Bcf/d of additional gas demand. Among the largest data center developments are Microsoft’s Mount Pleasant facility in Wisconsin, with a total load of ~2.7 GW, and Project Cardinal in Illinois at around 2.4 GW.
Along with data centers, natural gas demand is increasing in the Midwest from coal plant retirements, renewable integration and growing industrial load. Wisconsin has historically relied on coal-fired generation, and gas is seeing new opportunities as older plants are shut down. The ANR and Guardian expansions align pipeline infrastructure with this emerging load. – Kritika Gaikwad Tickers: DTM, META, MSFT, TRP.
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