Propwr, a division of ProPetro, has secured a long-term power supply contract to commit 60MW of energy to support a hyperscaler data centre operator in the Midwest region of the US.
Under the contract, Propwr will deliver a hybrid project combining battery energy storage system (BESS) technology with natural gas reciprocating engine generators.
The company states that the setup is intended to handle quick load changes effectively, providing a steady power supply and improving grid resilience and flexibility.
Deployment and operations of the system are slated to begin in Q2 2026. The contract features clauses for increasing capacity and extending duration, allowing the partnership to expand in tandem with the customer’s energy needs.
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Based in Midland, Texas, ProPetro announced the Propwr subsidiary in December 2024. The company had an initial order of more than 110MW of mobile natural gas-fueled power generation equipment for use in oilfield and industrial applications.
When announced, ProPetro said the subsidiary would focus on providing energy solutions for the growing energy demand across the Permian Basin, an area spanning parts of West Texas and New Mexico.
Earlier this month, Energy-Storage.news Premium reported that Investor-owned utility (IOU) Southwestern Public Service Company (SPS) is forecasting an approximately 40% increase in its peak summer electricity demand over the next five years.
In a filing, SPS noted ‘rapid electrification of oil and gas production in the Permian Basin, expansion of data centres, and siting of other large commercial and industrial loads’ as contributing factors to the electricity demand increase.
In 2024, the Electric Reliability Council of Texas (ERCOT) conducted the Permian Basin Reliability Study, which revealed that only roughly only one-third of the power demand expected for the Permian Basin by 2032 is currently supplied by the grid.
Propwr’s 60MW project will be supporting a Midwestern-based data centre operator, indicating a broader focus than the Permian Basin region.
In May, the company secured its inaugural contract to supply 80MW of power generation capacity in a 10-year agreement for a distributed microgrid installation.
