Data center developers have set their sights on the Midwest, targeting the region with an aggressive slate of new projects. To meet this growth, the emerging AI sector is backing several pipeline expansions that could transform the Midwest natural gas market.
In the ‘Data Center’ dashboard in Energy Data Studio, East Daley Analytics is monitoring 24 GW of potential power generation capacity tied to Midwest data center projects (see project map). In a high case, these projects could create over 5 Bcf/d of new demand if they all rely on gas for generation fuel.
Ample land, abundant water resources and low-cost electricity make the region a draw for developers. According to the Data Center dashboard, three of the top 10 US states for data centers are located in the Midwest.
East Daley tracks the regional gas market in the new Midwest Supply & Demand report, available for clients in Energy Data Studio. The monthly S&D report forecasts seasonal gas flows, demand, infrastructure and price spreads in one of the most dynamic US markets.
Among the Midwest states, Illinois has the largest potential growth from data centers; developers there have announced projects totaling 9.4 GW of capacity. Wisconsin ranks second with up to 7.2 GW of new generation capacity planned to serve data centers. Most of this proposed load is based around the Chicago/Milwaukee area, including Microsoft’s (MSFT) 2 GW Mount Pleasant data center in Wisconsin, the largest in the region.
Midwest Pipes Plan 3+ Bcf/d of Expansions
Pipeline expansions aimed at improving interregional connectivity will play a critical role in supplying gas to new data centers. We are tracking pipeline projects totaling 3.2 Bcf/d of capacity to meet increased regional demand (see table below).
Midwest consumers benefit from robust supply competition. Volumes travel on pipelines from Western Canada, the Bakken in North Dakota, the Rockies, Permian and Midcontinent basins, plus Appalachian gas from the Northeast. The proposed expansions reflect this diversity.
Two projects have reached a final investment decision: ANR Pipeline’s 400 MMcf/d Northwoods Expansion, and a 537 MMcf/d expansion of Guardian Pipeline. The projects together will meet load growth for data centers and new utility generation in Illinois, Wisconsin and Michigan’s Upper Peninsula. TC Energy (TRP) started service on a second ANR expansion, the 144 MMcf/d Wisconsin Reliability Project, in November ’25.
The most ambitious midstream project is a proposal by TRP to boost capacity sixfold on Crossroads Pipeline. The 300 MMcf/d Crossroads spans just over 200 miles from northwest Ohio to the Indiana/Illinois border. TRP launched an open season in February seeking interest to add up to 1.5 Bcf/d to the line.
Bottom Line: The ability to meet rising Midwest demand will hinge on the timely execution of pipeline expansions and continued access to supply from adjacent regions. As data center load accelerates, interregional connectivity will become increasingly critical, elevating the strategic value of firm transport and backhaul capacity. If the infrastructure buildout falls short, regional price spreads will widen and supply constraints become more likely during periods of peak demand. – Alec Gravelle Tickers: MSFT, TRP.
Download Part II of East Daley’s Permian Basin White Paper Series
The Permian Basin’s next big buildout is already taking shape, but this time the driver isn’t crude oil. In The Permian Basin at a Crossroads: Why This Pipeline Boom is Different, East Daley Analytics’ latest white paper reveals how gas demand from AI data centers, utilities and LNG exports is rewriting the midstream playbook in the leading US basin. Over 10 Bcf/d of new capacity and $12 billion in investments are reshaping flows, turning the Permian into a gas powerhouse even as rigs decline. Read Part II: Why This Pipeline Boom is Different
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