Diamondback Energy Pursues Power Joint Venture for Permian Data Centers

Diamondback Energy is actively pursuing partnerships with data center operators in the Permian Basin to provide access to cheap land and natural gas, as outlined by President Kaes Van’t Hof during a recent earnings call. The company is exploring a joint venture to establish a gas-fired power plant on its 65,000 acres, primarily aimed at supplying electricity to AI-focused data centers, while also addressing its own energy needs in the region. Amid the rising demand for data centers in Texas, Diamondback is positioning itself as a 'premier partner' for these operators, emphasizing its ability to meet their changing requirements. Other major oil producers, including ExxonMobil and Chevron, are also targeting this market, with similar initiatives underway to supply power to data centers. Diamondback produced approximately 107.25 billion cubic feet of natural gas in Q4, which it plans to use to support its power generation efforts. This strategy reflects a broader trend among natural gas producers to tap into the burgeoning data center sector as a critical customer base.