Texas-based oil and gas company, FO Permian Partners, has announced plans to deliver over 5 GigaWatts (GW) of off-grid natural gas power to data centers in the Permian Basin.
The company has secured a 320-acre site in Midland County, offering 150 MegaWatts (MW) of "ready now" capacity, with a larger 3,200-acre tract for future expansion.
Phase one of the project is expected to be operational by 2026.
The project is a joint effort with the City of Midland and HiVolt Energy, which will manage the power generation assets. These assets will use custom reciprocating engines and a redundant battery system to secure high reliability and rapid load response.
"AI infrastructure is the new backbone of economic growth and national competitiveness," said Jose Ortega, co-founder of FO Permian Partners. "We are removing the single biggest barrier to deployment, time."
FO Permian's strategy focuses on behind-the-meter power generation, which enables data centers to bypass traditional grid infrastructure. This model removes the need for transmission upgrades and long interconnection wait times, drastically reducing deployment timelines.
This plan will position the region as a national hub for AI infrastructure.
The site will provide access to low-cost natural gas, industrial water supplies, resilient fiber routes, and a location in an Environmental Protection Agency (EPA) attainment zone.
Ortega emphasized that this project is more than regional.
"The Permian Basin is the only location in American that can deliver the scale, speed, and reliability AI workloads demand," Ortega said.
According to the U.S. Energy Information Administration, the Permian Basin accounted for 22% of the nations marketed natural gas production in 2024, growing 12% each year.
