AXP Energy has signed a binding Joint Development Agreement (JDA) with Blackhart Technologies, a US-based company, to sell natural gas to power modular cryptomine data centers in Colorado.
AXP will provide large volumes of stranded natural gas from its Pathfinder gas field, which currently houses 24 ready-to-connect oil and gas wells.
Under the JDA, Blackheart will develop several sites across the field. Blackhart has acquired data processing equipment and its containers for deployment at the initial site, located at the Pathfinder 2 well. Two modular data centers are anticipated to commence operations this month.
The facilities will reportedly host nearly 600 Bitmain mining rigs and will be used to mine Bitcoin.
The project will run for an initial three-year term with automatic renewal for subsequent one-year terms. Blackhart has the first right of refusal regarding any subsequent expansion of data processing operations.
AXP will provide natural gas, power generation equipment, and electricity for the site’s planned data processing activities. The company will also oversee the equipment installation, commissioning, maintenance, and servicing.
“Blackhart is now deploying equipment to the site so the first two modular data centers [will be] operational later this month. We will then look to expand to other sites once reliability is demonstrated with the first two modules at Pathfinder 2," said Tim Hart, US CEO at AXP.
Depending on the initial project's success, two more sites are planned at the JD Powell and Kelce Court wells in the near term.
Several other firms have signed off-take agreements with gas companies to use their stranded gas to power their operations. Much of this has been in cryptocurrency, where several deals have been made over 2024.
Earlier this month, Hyperscale Data launched a pilot project to explore the feasibility of Bitcoin mining powered by natural gas turbines operated by an undisclosed project partner.
In October, MARA launched a 25MW micro data center operation across oil wellheads in Texas and North Dakota, powered exclusively by excess natural gas.
Companies using flared gas to power servers claim the process benefits the environment because otherwise, wasted energy is used.
