Williams: Data Centers Moving Closer to the Pipeline The Williams Companies Inc. (NYSE: WMB) operates one of the largest interstate natural gas pipeline systems in the United States, with a network spanning key energy-producing regions and high-growth population centers.

The company has explicitly cited rising demand from data center developers, particularly those planning large-scale AI-ready facilities. These projects require access to high-volume, low-cost, and reliable baseload power. That closely aligns with Williams' pipeline and gathering assets in regions like the Gulf Coast, Appalachia, and the Southeast.

Data center developers are now actively selecting sites near existing natural gas infrastructure to reduce both cost and permitting complexity. In some cases, Williams is engaging in direct discussions with developers to co-locate facilities or provide dedicated capacity. This is increasing the company’s capital expenditures (capex) spending, a fact that was reflected in its second-quarter earnings, in which Williams missed earnings per share (EPS) forecasts by three cents. It also shows up in the company’s 1.75% debt-to-equity ratio, which is above its historical average.

Plus, at 29x earnings, WMB stock is expensive to its sector and to itself. However, investors can collect a dividend with a 3.45% yield to mitigate the stock’s range-pound performance in the past year.