Overwatch Capital has announced a strategic partnership with Idemitsu Kosan to develop high-density, energy-resilient AI data centers across ten US states. As part of this collaboration, Idemitsu is investing in Overwatch Capital and is launching a national natural gas supply operation in the US. Idemitsu will supply natural gas for on-site generation systems capable of supporting up to 1 gigawatt of capacity for AI-focused data centers.
The data centers will be constructed in Ohio, Texas, Illinois, Utah, Colorado, Arizona, Georgia, Nevada, South Carolina, and Pennsylvania, supporting grid-connected and private-grid models. According to Overwatch, these facilities target hyperscale operators, GPU-cloud providers, and institutional investors focused on large-scale, energy-resilient AI compute environments.
Overwatch’s SIDE (Scalable Infrastructure for Digital Environments) Platform integrates on-site natural gas generation, battery storage, advanced cooling, and proprietary energy management systems for scalable deployments. Facilities are designed to support next-generation GPU clusters, liquid-cooling technologies, and high rack power densities. Idemitsu will not only supply natural gas but will also explore additional data center energy services such as immersion cooling, diesel for backup systems, and battery energy storage, building on its experience in global energy operations.
Key features highlighted by Overwatch for data center tenants include multi-layer backup and microgrid independence for uptime, dedicated secure environments, natural gas generation coupled with battery storage to manage carbon intensity, and comprehensive energy solutions including fuel cells and immersion cooling. The platform’s dual private-grid and utility grid design aims to reduce interconnection risk and accelerate site delivery. Overwatch plans to begin two projects in 2026: Resilience Dallas–Fort Worth and Resilience Columbus (Ohio).
Marathon Capital served as exclusive financial advisor for Overwatch Capital in arranging this partnership and will lead the structuring and financing of the upcoming projects.
“This partnership sets a new standard for high-density, low-carbon AI data centers, empowering our clients to deploy class-leading compute at scale through Overwatch’s SIDE Platform while advancing resiliency and sustainability in the communities we serve,” said Sean Lyle, Managing Partner at Overwatch Capital.
“This collaboration with Overwatch Capital marks an important step in connecting reliable, lower-carbon energy with next-generation data infrastructure. Demand for electricity to support AI is expected to grow rapidly, and through our natural gas supply operations in the United States, we are committed to providing sustainable and efficient energy solutions that contribute to the advancement of an AI-enabled society,” said John H. Happ III, Senior Vice President of Idemitsu Americas Holdings.
Source: Overwatch Capital
Source: Idemitsu
