AI data center developer Prometheus Hyperscale has teamed up with US energy firm Istmo Energy to develop an up to 2.5GW data center campus in Reeves County, Texas.

The data center in Pecos, Texas, is slated to have a capacity of 1.5GW in Phase 1, rising to 2.5GW in future phases.

According to the companies, the data center will be powered behind the meter by both piped natural gas and ethane supplied from Istmo Midstream’s co-located fractionation facility.

The companies claim the dual-fuel architecture adds an extra layer of fuel security and operational flexibility by reducing dependence on any single fuel source or supply pathway, while providing the reliability and resilience required for continuous compute.

First power is slated for 2027 through modular data center deployments, with an option to combine the modular units with custom-built facilities in 2028.

The campus is expected to utilize closed-loop cooling systems to alleviate concerns about water use in the local community.

“The Pecos Project and partnership with Istmo Energy adds 2.5GW to our existing project pipeline and advances our vision of developing scalable infrastructure for the age of AI," said Trevor Neilson, president of Prometheus Hyperscale.

"Power availability and long-term reliability have become the primary bottlenecks for the AI transition," said Alex Gutierrez, CEO of Istmo. "By pairing behind-the-meter generation directly with our co-located fractionation assets, we are delivering a unique and unprecedented dual-fuel capability in behind-the-meter data centers. Seamlessly integrating on-site ethane supply alongside pipeline natural gas eliminates single-point fuel risks, insulates compute from grid constraints and curtailments, and establishes a new benchmark for uptime and operational resilience in hyperscale infrastructure."

News of the development follows an announcement by Texas governor Gregg Abbot earlier this month ordering state regulators and ERCOT to audit all data centers currently in Texas’ interconnection queue. The companies contend that by avoiding seeking a grid connection, they will not be impacted by the audit, which could see up to 20 percent of the US’ data center projects subject to delay.

Launched around 2020 and formally known as Wyoming Hyperscale Whitebox, Prometheus was relaunched in September 2024.

In June, the company secured planning approval for its long-planned Wyoming campus. The company said the 506-acre site will initially offer 1.25GW, with potential to expand to 5GW. Prometheus said the Evanston campus will operate as a fully islanded microgrid, generating power on-site through natural gas engines and turbines. Not connecting to the public utility grid will eliminate “interconnection queue exposure and ratepayer impact as regulatory risk factors,” the firm said.

Elsewhere in Texas, the company is also planning a 500-acre development outside Dallas between Talty and Post Oak Bend City in Kaufman County.

Istmo is an independent midstream and downstream energy infrastructure company. It operates in the Permian and Delaware Basins and is headquartered in Texas.