Enbridge Invests $2 Billion in Data Center Energy Projects, Advances ESG Goals

Enbridge has approved approximately $2 billion USD in new energy infrastructure projects, including a $900 million solar facility for Meta and major natural gas expansions to meet rising industrial demand. The company is responding to increasing energy needs from data centers, liquefied natural gas (LNG) markets, and heavy industry in North America.

These investments come alongside record second-quarter results and a robust $2 billion project backlog. Enbridge’s strategy focuses on sustainable growth and value creation for investors, supported by strategic Indigenous partnerships and disciplined capital allocation.

Enbridge to Deliver Solar Power for Meta’s Data Centers

The centerpiece of the new projects is the Clear Fork Solar Project, a 600-megawatt facility located near San Antonio, Texas. Representing a $900 million USD investment, the project is backed by a long-term power purchase agreement with Meta Platforms Inc., the parent company of Facebook and Instagram. The facility is scheduled to begin operations in 2027.

This initiative is designed to meet Meta’s growing need for sustainable and reliable electricity to power its expanding network of data centers. Enbridge clarified that recent changes to U.S. tax credits under the “One Big Beautiful Bill Act” will not impact Clear Fork or other advanced-stage renewable energy projects.

Natural Gas Network Expansions

To support industrial and LNG sector growth, Enbridge is also expanding its natural gas infrastructure:

• In the United States, the Texas Eastern Transmission Line 31 expansion will cost $100 million USD and add 160 million cubic feet per day of capacity via a new lateral pipeline in Mississippi. This expansion is supported by long-term contracts.

• In British Columbia, Canada, Enbridge is investing $300 million CAD in the Aitken Creek expansion, which will increase gas storage capacity by 40 billion cubic feet. This facility is the only underground gas storage site in the province. Ten-year storage contracts tied to LNG export demand help de-risk the project.

Enbridge’s Strategic Asset Movements and Pipeline Growth

Enbridge recently finalized the acquisition of a 10% stake in the Matterhorn Express Pipeline, a key asset in the Permian Basin that transports 2.5 billion cubic feet per day to the U.S. Gulf Coast.

Additional expansions include:

• Increasing the capacity of the Traverse Pipeline in Texas from 1.75 to 2.5 billion cubic feet per day.
• Securing new commitments for the Southeast Supply Header, addressing rising gas demand in the U.S. Southeast.

Operating Performance and Project Pipeline

Despite market volatility, Enbridge’s diversified model continues to perform well:

• Its Mainline crude oil system moved 3 million barrels per day in Q2.
• An oversubscribed tender for the Flanagan South pipeline led to approval of Phase 2 Mainline optimization, expected later this year.
• In natural gas distribution, adjusted EBITDA rose to $840 million CAD in Q2, driven by acquisitions of U.S. utilities, customer growth, rate increases, and colder-than-usual weather in Ontario.

Enbridge Hits Indigenous Partnership Milestone

Enbridge completed a $700 million CAD transaction with the Stonlasec8 Indigenous Alliance, granting a 12.5% ownership stake in the Westcoast Pipeline to 38 First Nations communities.

The deal includes a $400 million CAD loan guarantee from the Canada Infrastructure Bank and reflects Enbridge’s commitment to Indigenous inclusion and capital recycling.

“This partnership delivers long-term economic value to Indigenous communities and reflects our broader sustainability approach,” the company stated.

Enbridge Financial Outlook and Capital Discipline

Enbridge reaffirmed its 2025 financial guidance, targeting:

• Adjusted EBITDA of $19.4–20 billion CAD
• Distributable cash flow per share of $5.50–5.90 CAD
• A debt-to-EBITDA ratio of 4.7x, below the midpoint of its target range

The company also increased its exposure to the Woodfibre LNG project to $2.9 billion USD. This project, backed by 15-year purchase agreements with BP Gas Marketing for 100% of its capacity, is expected to generate stable cash flow.

With $9–10 billion USD in annual investment capacity and a $50 billion pipeline of long-term opportunities, Enbridge’s disciplined approach aims to sustain annual dividend growth and reinforce its leadership in North American energy infrastructure.

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(Featured image by Andreas Gücklhorn via Unsplash)

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