In West Texas, the collaboration between MPLX and MARA (formerly Marathon Digital Holdings) is redefining the “energy-to-intelligence” pipeline by co-locating data centers directly at the source of power. Through a strategic partnership, MPLX provides natural gas from its Delaware Basin processing plants to fuel MARA’s integrated power generation facilities, which are designed to scale from an initial 400 MW to a massive 1.5 GW. This “behind-the-meter” strategy bypasses traditional grid bottlenecks and leverages low-cost local resources to power high-performance computing and AI workloads.

This trend toward energy vertical integration is mirrored by Google’s recent deal with TotalEnergies, which secures 1 GW of solar capacity from the Wichita and Mustang Creek projects in Texas. While Google’s approach focuses on a 15-year renewable PPA to achieve its 24/7 carbon-free energy goals, both initiatives underscore a critical industry shift: to meet the insatiable power demands of next-generation data centers, tech and digital asset leaders are no longer just consumers of energy, they are becoming direct partners in its production and infrastructure.

November 5, 2025

MPLX LP and MARA Holdings Inc. are planning to develop large-scale integrated power generation and data centers in West Texas, a region that is fast becoming a hub for energy and data center co-location. The LOI agreement aims to link natural gas processing, power generation, and advanced computing under one operational framework.

Project Overview

The planned power-data center development in West Texas will use natural gas from MPLX’s Delaware Basin processing facilities as fuel for MARA’s operations. The initial phase targets 400 MW of generation capacity, with option to scale up to 1.5 GW. MARA’s data centers will primarily support blockchain and AI-compute operations.

Factsheet for New West Texas Data Centers by MARA to be Powered by MPLX Natural Gas

Location: West Texas, U.S.

Developers: MPLX LP for energy and midstream operations, and MARA for data center operations.

Initial Capacity: 400 MW. Expandable up to 1.5 GW.

Power Source: Natural gas from MPLX’s Delaware Basin processing plants

Status: Letter of Intent signed.

Project Timeline

Q4 2025: Letter of Intent signed between MPLX and MARA Holdings.

2026 onward: FID, construction, and commissioning expected. Following regulatory and due diligence processes.

Outlook on the New West Texas Data Centers by MARA to be Powered by MPLX

This collaboration builds on a growing synergy between energy infrastructure and high-performance data applications. West Texas is already a hub for gas and renewables. Hyperscale computing and AI-driven facilities find the area attractive, most likely due to its energy abundance and favorable regulatory climate.

By integrating local gas processing and data center energy needs, MPLX and MARA could establish one of the first hybrid industrial-energy ecosystems of its kind in the Permian Basin. The region’s Delaware Basin is also having a similar development backed by LandBridge and NRG’s new 1.1 GW natural gas-fired plant to power a future large-scale data center build-out.

What to Expect

The project however remains in its early phase and hinges on successful completion of contracts, regulatory clearance, and environmental assessments. Gas price volatility, policies, and permitting delays are also likely to influence the cost of the project. Other recent projects already have they estimated costs out, like Babcock & Wilcox’s high-value gas powered data center deal with Applied Digital.