Texas Critical Data Centers (TCDC) has entered a non-binding memorandum of understanding (MoU) with PowerForward Energy to supply onsite generation at its proposed 250MW AI data center in Ector County, Texas.

The MoU will set the parameters for a power supply agreement between the companies, which will see PowerForward provide 250MW of onsite power for the planned data center. PowerForward will manufacture, install, and operate the assets, with the first 100MW set to be delivered within 12 months of funding and full deployment expected within 18 months.

The power will be delivered from reciprocating natural gas engines manufactured by PowerForward. PowerForward is itself a joint venture between Progen Industries and MBS Engineering.

Information on the company is scarce, with its website stating that it focuses on “prime power, standby power, and renewable energy technologies, including pyrolysis and waste-to-energy systems.” DCD has reached out for further information.

“We are at the forefront of a generational shift in how America produces and consumes power. As AI, cloud, and high-density computing reshape the industrial landscape, the demand for resilient, on-site generation is no longer optional – it is essential,” said Brian James and John Manning, founders of PowerForward Energy.

TDCD was established in 2024, following a joint venture agreement between New Era and Sharon AI to develop a natural gas-powered data center in the Permian Basin. The capacity of the planned data center was initially 90MW, however, following the acquisition of a larger plot of land, the capacity was revised to 250MW.

The project is expected to be developed through a phased approach, with the first 100MW segment expected to come online by December 2026. The second 150MW phase is expected to follow six months after the first is completed.

TDCD is currently in the process of completing phase one environmental site assessment at the proposed data center. In addition, the partners are exploring carbon capture technologies as a means to reduce the data centers' overall emission profile. TDCD has said it is already in active discussions with potential customers, including parties interested in acquiring powered land for near-term deployment.

The next steps for the project include securing a natural gas supply agreement and advancing interconnection planning with grid operators in the region.

Reflecting on the MoU, E. Will Gray II, CEO of New Era Helium, said: “With the initial site now identified and due diligence well underway, TCDC is positioned to execute on its planned power strategy for the behind-the-meter data center campus. Concurrently, TCDC is in negotiations to secure offtake from intrastate and interstate natural gas transmission lines located in close proximity to the property.”

Founded last year, Sharon AI is a high-performance computing company focused on AI cloud GPU compute infrastructure. The company has Nvidia L40S and H100s, and AMD MI3000X GPUs at Equinix and NextDC data centers, as well as custom-built modular data centers.

New Era Helium is an exploration and production company that sources helium produced in association with the production of natural gas reserves in the US. New Era went public last year after a merger with Roth Capital's Roth CH Acquisition V special purpose acquisition company.