Data Centers Drive 2026 Midstream, LNG Deal Surge

Rising data center power demand and long-term LNG contracting are drawing fresh private capital into pipelines, gathering systems and LNG projects, setting up a busier 2026 for midstream and export deals.

(P&GJ) — Rising power demand from data centers and industrial automation is pushing more private equity and infrastructure capital into midstream assets and U.S. LNG projects heading into 2026, dealmakers told PE Hub.

Deal activity is being supported by growing natural gas demand, a maturing midstream market built around long-life pipeline and gathering systems, and investor interest in LNG export projects that are still earlier in the private-capital cycle than traditional midstream.

Dealmakers said regulatory conditions and permitting expectations under the current administration are also expected to influence project timelines and transaction activity in both sectors.

PE Hub cited forecasts pointing to continued LNG demand growth and significant volumes of new supply expected later this decade, which could increase the call on U.S. natural gas resources. Dealmakers from Tailwater Capital, Mizuho Greenhill and Baker Botts highlighted long-term contracts, export demand and the role of foreign strategic investors as key drivers behind LNG and midstream investment.

In the midstream market, dealmakers pointed to continued potential for large asset transactions and sales of established pipeline systems, with recent examples including major gathering and processing deals and high-value pipeline transactions. They also cited ongoing interest from sovereign wealth funds and pension investors alongside private equity and infrastructure firms.

PE Hub also cited Enverus data showing midstream deal activity of $24.2 billion in 2025, with deal multiples averaging around 7x EBITDA since 2023, and higher average multiples in LNG since 2020.