MPLX to supply natural gas for MARA’s planned 400 MW West Texas data center power facilities

MPLX has signed a letter of intent with MARA Holdings to facilitate natural gas supply from its Delaware Basin processing plants to MARA’s planned gas-fired power generation sites and data center campuses in West Texas. The agreement, announced by both firms, outlines the initial supply for up to 400 MW of power generation with plans to scale operations to 1.5 GW.

Under the letter of intent, MPLX will deliver natural gas to new MARA-owned and operated gas-fired power generation sites built near MPLX processing facilities. These power plants will supply energy to MARA’s future state-of-the-art data centers primarily serving high-performance computing (HPC) and artificial intelligence (AI) workloads, as well as MARA’s dynamic mining operations. Power from the new generation facilities will also support MPLX’s West Texas operations and enhance grid reliability for existing producer-customers.

According to MARA, the new data center campuses and integrated power facilities are being designed with an initial capacity of 400 MW and the potential to scale up to 1.5 GW. The company states that its approach aims to maximize efficiency, optimize power usage, and allow for monetization of any excess generation. The facilities will be located in proximity to natural gas processing assets to streamline supply and support scalable compute infrastructure.

“This collaboration will create additional in-basin demand in the Delaware basin and enhance our natural gas value chain with improved power reliability, benefiting existing producer-customers,” said Maryann Mannen, MPLX president and chief executive officer.

“Collaborating with MPLX allows us to leverage lower-cost local natural gas resources and build the foundation for high-performance, efficient data center campuses,” said Fred Thiel, MARA’s chairman and CEO. “Our integrated approach provides MARA with the flexibility to optimize power usage, monetize excess generation, and support the region’s transformation into a hub for digital infrastructure. As the project scales, we anticipate transitioning from dynamic mining loads to advanced AI/HPC workloads, maximizing value and optionality for all stakeholders.”

MARA will own and operate both the data center and power generation facilities; MPLX will act as natural gas supplier and receive electricity under a tolling agreement. The terms outlined in the letter of intent are subject to negotiation and execution of definitive agreements, regulatory and third-party approvals, and completion of due diligence by both parties.

Source: MPLX