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.

The agreement will cover the early stage of the Maverick Project, a phased power generation initiative intended to support multiple data center operators at a site near Lonesome Pine Regional Airport. The project is slated to have a capacity of up to 600MW, with an initial phase of approximately 100MW.

"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 has said that it is currently in discussions with Wise County officials, state-level stakeholders, and regional economic development groups to attract data center investment to the area.

"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."

The technology hub is expected to be built in phases as additional end users are secured, with early engagement with potential customers already underway, according to the company.

The project is Red Post’s second major development in the US. It has also announced plans for a 400MW natural gas-fired combined cycle power plant in Laredo, Texas.