Barclays' technology analysts have identified a slate of gas production and midstream companies they consider central to the energy and logistics needs of an expanding AI infrastructure buildout. In their view, a surge in data center construction driven by hyperscale cloud providers and AI labs will require substantial and sustained natural gas supplies to power the digital backbone supporting advanced AI workloads.
The analysts project that annual AI infrastructure spending by Western hyperscalers and AI labs could exceed $1 trillion before peaking in 2028, a figure they say is more than $300 billion above current consensus estimates. To support expected demand, the bank assembled a list of more than 400 companies it regards as essential to digital and power infrastructure development - with gas producers and midstream operators called out as critical suppliers to the AI arms race.
Barclays also notes the potential for incremental demand arising from sovereign AI initiatives and activity in China, while acknowledging that any eventual slowing of AI training demand - described in the analysis as a deceleration associated with recursive self-improvement - could temper requirements over time.
Highlighted companies
The bank singled out 10 leading gas and midstream firms as particularly relevant to the anticipated buildout. Briefly, Barclays' list and the recent company-specific developments it cites are as follows:
- Exxon - Described as an integrated energy giant that both produces and sells natural gas globally and manages a substantial US unconventional gas portfolio. The firm has been the subject of recent analyst activity, with Wolfe Research downgrading ExxonMobil to Peerperform from Outperform, and reports that the company is contemplating a sale of its Hong Kong gas stations.
- Chevron - Noted for operating global upstream gas assets and holding sizable equity stakes in Australian LNG projects. Barclays' summary highlights Chevron’s expanded interest in Venezuelan oil operations via an asset swap and reports that Eneos Holdings has emerged as a sole bidder for the company’s Asian assets valued at more than $2 billion.
- Enbridge - Identified as a midstream operator transporting natural gas through a large pipeline network and running gas distribution utilities. The company has received Canadian government approval for a $4 billion expansion of its Westcoast natural gas pipeline system. Barclays also records recent analyst moves, including a downgrade to Hold from Jefferies alongside a price-target increase from BMO Capital.
- Williams Company - Recognized for operating vital natural gas transmission pipelines and gathering and processing assets. Recent corporate actions cited include a 5% rise in the quarterly dividend to $0.525 per share and an upgrade to Buy from Goldman Sachs.
- Enterprise Products Partners - Described as providing gathering, processing, transportation and storage services for natural gas and NGLs. Barclays points to first-quarter 2026 results in which revenue beat expectations while earnings per share missed forecasts; Raymond James subsequently raised its price target on the partnership.
- Kinder Morgan - Listed as owning one of North America's largest natural gas pipeline and storage networks. The company reported first-quarter 2026 earnings and revenue above analyst expectations, while Jefferies adjusted its price target lower.
- Energy Transfer - Cited for its extensive network of natural gas gathering, processing and transportation assets. The firm’s fourth-quarter 2025 results showed a revenue beat but an earnings per share miss, and Truist Securities initiated coverage with a Buy rating.
- TC Energy - Noted for operating an expansive continental network of natural gas pipelines and storage facilities, with the company reporting fourth-quarter 2025 earnings and revenue that exceeded analyst estimates.
- Cheniere Energy - Identified as an LNG specialist running large-scale export facilities and related gas procurement and transport operations. Barclays references Cheniere's announcement that its chairman will retire in May 2026 and that the current CEO will take on the combined role, along with Jefferies raising the company's price targets.
- ONEOK - The firm operates a region-diversified pipeline network for natural gas, NGLs and crude oil. ONEOK’s first-quarter 2026 earnings missed expectations, yet the company lifted its full-year guidance and saw a price-target increase from Stifel.
Barclays' coverage also points to a broader set of gas production and midstream names that other firms have flagged as relevant to the AI infrastructure buildout. Those names include EQT Corp, Expand Energy, Venture Global, DT Midstream, Antero Resources, Range Resources and BKV Corp - companies that Barclays notes in the context of industry-wide supply considerations.
Overall, Barclays frames gas producers and midstream operators as key suppliers to a wave of data center construction tied to AI, while underscoring that demand dynamics could be further influenced by government-led AI projects and activity from China, as well as by any change in AI training intensity over time.
Summary
Barclays highlights natural gas producers and midstream operators as critical to meeting the energy and logistics needs of an anticipated acceleration in AI-related data center construction. The bank projects annual AI infrastructure spending from Western hyperscalers and AI labs could exceed $1 trillion prior to a 2028 peak, representing more than $300 billion above consensus, and compiles a list of more than 400 companies connected to digital and power infrastructure development, with particular emphasis on the 10 gas and midstream names described above.
Key points
- Barclays' analysts estimate annual AI infrastructure spending from Western hyperscalers and AI labs could top $1 trillion before peaking in 2028, more than $300 billion above current consensus.
- Natural gas producers and midstream operators are highlighted as essential suppliers to support the energy demands of expanded data center construction tied to AI workloads.
- Sectors impacted include energy production and midstream infrastructure as well as the digital infrastructure segment that supports data centers.
Risks and uncertainties
- Company-specific financial outcomes vary - several firms reported mixed quarterly results (revenue beats with EPS misses or vice versa) and received analyst downgrades or price-target adjustments, introducing near-term stock-specific volatility for energy and midstream equities.
- Demand projections for AI infrastructure may be affected by sovereign AI initiatives and activity in China - these factors could either bolster or fail to materialize as additional demand sources.
- Barclays notes the possibility that recursive self-improvement in AI could lead to a deceleration in training needs, which would reduce the anticipated growth in energy demand tied to data center construction.