Solaris has upsized and extended a power supply agreement with a “major” data center client as part of a joint venture agreement.
The joint venture named Stateline Power signed an initial service commercial contract earlier this year for 500MW of power, which has subsequently been increased to 900MW. The length of the power supply contract has also been extended, from six years to seven.
The capacity is expected to be used to power a data center operated by the joint venture partner. The location and timeline of the data center were not disclosed.
In addition, Stateline has executed a term sheet and is finalizing definitive documentation for up to $550 million in the form of a senior secured term loan facility. The loan will be used to support the majority of the capital needs of the joint venture.
Commenting on the agreement, Bill Zartler, Solaris chairman and CEO, said: “We are also excited to solidify our partnership with an industry leader and fast mover in the artificial intelligence computing space to provide power for their newest data center campus.
“We believe this joint venture demonstrates Solaris’ value as a partner and in its ability to deliver reliable prime power while also providing redundancy and complementary backup to grid power. Additionally, we have secured meaningful new generation capacity to meet the continued demand we see for power, whether it is co-located, off-grid, or backup.”
According to its website, Stateline is a manufacturer of generator sets across all markets throughout the United States and Canada. It offers both diesel backup generators and gas-fired generation units. DCD has reached out to the company to determine what generation units will be utilized in the data center project.
In addition to the data center project, Solaris has announced that it has secured 330MW of new natural gas generation capacity for its power generation fleet. Delivery of the new capacity is expected to begin in the first half of 2026. Following this, the company's total operating capacity is expected to reach 1.7GW by the first half of 2027.
Solaris is a Houston-based energy solutions firm focusing on natural gas-powered turbines. It has developed an integrated power solution for the data center market, offering behind-the-meter natural gas power in increments of 5.7MW, 16.5MW, and 35MW.
