ARTICLE
9 October 2025

Bracewell Explains – Speed To Power: Using Associated Natural Gas To Power Data Centers (Video)

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Bracewell

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The growing energy demands of AI and data centers are challenging the capacity and reliability of traditional power grids. In response, developers are exploring innovative, behind-the-meter power generation solutions.
United States Energy and Natural Resources
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The growing energy demands of AI and data centers are challenging the capacity and reliability of traditional power grids. In response, developers are exploring innovative, behind-the-meter power generation solutions.

One such solution involves using associated natural gas, a byproduct of crude oil production, to fuel power generation co-located with data centers. This approach is gaining traction in regions like the Permian Basin, where it offers a new revenue stream for gas producers facing pipeline constraints and provides a reliable power source for data center operators.

A critical component of these projects is the Power Purchase Agreement (PPA), which governs the long-term sale of electricity from the power generation facility to the end-user, such as a data center. Crafting a robust PPA requires careful consideration of numerous factors, including pricing structures, performance guarantees, and the allocation of risks associated with fuel supply and infrastructure.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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