US independent power producer Red Post Energy Group has signed a letter of intent (LOI) with data center developer Wise Innovation Hub Venture (Oasis) to develop a natural gas power supply solution for a planned data center and technology hub in Wise County, Virginia.

"Reliable, dispatchable power is the gating factor for data center development," said Lance Medlin, CEO of Red Post Energy. "This LOI allows us to work closely with Oasis to design a power solution that meets the scale, reliability, and growth requirements of hyperscale and enterprise data users, while aligning with the Commonwealth of Virginia's economic development priorities."

Under the terms of the non-binding LOI, the companies plan to assess potential power supply options for the site, including on-site natural gas-fired generation, grid interconnection studies, preliminary engineering, and commercial modelling. In addition, the companies have indicated that they will engage midstream gas company Enbridge on the potential development of natural gas pipeline infrastructure to serve the project.

"Oasis is committed to positioning Wise County as a destination for advanced technology and data center investment," said Ross Litkenhous, partner at Wise Innovation Hub Venture. "This collaboration with Red Post Energy represents a critical step toward delivering the reliable, scalable power infrastructure that data center operators require while driving long-term economic development in Southwest Virginia."