Venture Global raises profit forecast, expands push into AI data center power infrastructure

Venture Global

Tue 11:31

Nov 10 (Reuters) - Venture Global raised its full-year profit forecast on Tuesday after beating Wall Street estimates for the third quarter, as the US liquefied natural gas exporter looks to expand supply of power and infrastructure to the booming AI data center segment.
Soaring demand for electricity from AI data centers has strained existing power grids, creating openings for energy companies that can supply dedicated power infrastructure. 
In October, the Arlington, Virginia-based company signed framework agreements with GE Vernova GEV.N and Baker Hughes BKR.O for up to 16 power island units totaling about 11.5 gigawatts of capacity, along with related transformers and grid equipment, to support the data center buildout.
The deals build on its existing asset base, including about 15,000 acres of controlled land, access to roughly 13 billion cubic feet per day of pipeline capacity and about 4 gigawatts of existing power infrastructure.
"Venture Global can provide access to island-mode power, land, closed-loop water systems, American natural gas supply, our in-house EPC, and track record of execution as the market dictates to support compute capacity for the country's AI race," CEO Mike Sabel said. 
The company expects to begin delivering compute capacity in late 2028 and reach about 5 GW by the end of 2031, with operations at sites in Louisiana's Cameron and Plaquemines parishes that would not rely on public power or water supplies. 
Venture Global also narrowed its timeline for the first LNG production from its CP2 project to July 2027, 24 months after it reached a final investment decision on Phase 1.
The company now expects 2026 adjusted core earnings between $10 billion and $10.3 billion, up from its prior forecast of $8.7 billion to $9.1 billion and higher than analysts' expectations of $9.2 billion, according to data compiled by LSEG.  
Venture Global's third-quarter adjusted core profit came in at $2.6 billion, compared to analysts' estimates of $2.5 billion, according to LSEG data.

(Reporting by Pranav Mathur in Bengaluru; Editing by Jonathan Ananda)
((Pranav.Mathur@thomsonreuters.com;))