Is Enbridge on Solid Footing to Meet Growing Data Center Power Demand?

Enbridge Inc. ENB is well-positioned to capitalize on the growing demand for power or reliable electricity from data centers. Unlike many other energy players, the midstream energy giant can meet the mounting power needs through its natural gas transportation pipelines and renewable energy generation facilities.

On the second-quarter 2025 earnings call, the energy major stated that it continues to get contracts from technology giants for supplying power and fuel from both renewable projects and natural gas midstream infrastructures. Enbridge also mentioned during the call that it has more than 10 late-stage development projects that are associated with supplying power and energy to data centers.

ENB mentioned on the call that its midstream assets are situated near new data centers and numerous natural gas-powered electricity generation units across North America, which is a big positive. Thus, ENB is well-positioned to connect with new customers with minimal effort and is expected to generate incremental cash flows.

WMB & KMI Will Also Meet Power Demand

Like ENB,Williams WMB and Kinder Morgan Inc. KMI are also on a solid footing to meet the cleaner power demand.

Williams is focusing on behind-the-meter power plants so that they can supply power directly to the data centers. Through its massive natural gas pipeline assets, WMB is also gaining from increasing demand for power.

Being a leading midstream company in North America, Kinder Morgan is gaining from the rising power demand as it has a huge natural gas pipeline network.

ENB’s Price Performance, Valuation & Estimates

Shares of ENB have gained 26.7% over the past year compared with the 25.2% improvement of the industry.

From a valuation standpoint, ENB trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 15.48X. This is above the broader industry average of 13.86X.

The Zacks Consensus Estimate for ENB’s 2025 earnings hasn’t seen any revisions over the past seven days.

Enbridge stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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