Energy, Hormuz and Digital Infrastructure Round Up
Economic mixed messages; Iran makes demands; US energy exports rise
In a video news round up, topics in the news related to notable energy indicators are reviewed with commentary for context. While geared for an investor audience, the findings are relevant to the U.S. economy at large.
Some Select Summary Points
Data centers as a political flashpoint
● Data center energy and water use has become an easy political target this election season, with two state-level approaches emerging.
● Virginia’s governor is pushing to intervene in the $67B NextEra–Dominion merger (creating $400B in enterprise value, covering ~110 GW of capacity), citing concerns over ratepayer costs, job impacts, state benefits, and that data centers pay their fair share of electricity costs.
● This echoes the Trump administration’s ratepayer protection plan at the federal level.
● Texas Governor Abbott has ordered audits of data center projects given an overstated 474 GW interconnection queue, seeking information on water use, cooling technology, and ownership.
● A batch process meant to streamline the queue — one that drew significant lobbying investment — has been halted, effectively pausing new data center development while ERCOT and the Public Utility Commission review information already in the pipeline.
● Well-financed, established hyperscale developers are unlikely to be materially affected; the pause likely impacts speculative or thinly-financed projects.
Strait of Hormuz / Middle East crisis — market impact
● The Iran/Middle East crisis has not resolved; a brief pause is still at risk of reigniting as Iranian hardliners seek assurances over benefits tied to the Strait.
● US midstream and oil & gas producers have benefited from the disruption; a full quarter of data is now available to assess the export windfall.
● Futures were broadly higher (WTI, Brent, gasoline, heating oil); European natural gas (Dutch TTF) was up 6%, partly reflecting hot summer LNG demand.
ONEOK, an Oklahoma-based midstream firm connects to demand
● Their extensive pipeline network across Texas and the central US, including Oklahoma’s Anadarko SCOOP/STACK play, are well diversified across the oil and gas value chain.
● Q2 2026 (the period the Strait has been obstructed) shows crude oil volumes up ~1.5M bpd, a considerable jump from Q1; aviation fuel volumes up 12%, crude volumes up ~10%.
● In their latest reporting, they noted ~5 Bcf of potential natural gas demand from LNG and data center counterparties, concentrated in Oklahoma/Texas/West Texas, plus LNG and industrial demand along the Louisiana Gulf Coast.
● They have a pipeline under construction connected to Project Kilby, a 2+ GW Chevron-developed data center project in West Texas with Microsoft as the anchor offtaker. I note that these projects take years to move from announcement to execution.
Peer comparisons and funds that have benefited are then highlighted in the video.
Bottom line
● The Strait of Hormuz disruption has been a tailwind for US midstream via higher LNG, refined products (diesel, aviation fuel), and NGL/ethane/LPG exports, as global buyers turn increasingly to the US.
● Expect election-cycle headlines to add noise around energy and data center projects, but the underlying fundamentals should be the focus.