Energy

Natural Gas and Batteries Anchor Data Center Growth

Data Center, Natural Gas, Oil, Power,

Data centers across the United States are increasingly grappling with one of the most pressing challenges facing the digital economy: securing reliable electricity. With grid interconnection queues stretching for years, developers are looking to temporary yet scalable solutions. Bridge power, a mix of natural gas generators and large-scale batteries, is emerging as a critical tool to keep projects on track while broader grid connections slowly materialize.

Natural Gas Generators and Batteries Take Center Stage

For hyperscale developers, speed to power is everything. Conventional utility-scale gas turbines are subject to backorders that can extend several years, but smaller gas generators can be delivered and installed in far shorter timelines. According to Conduit, a company focused on delivering bridge power solutions, this flexibility is already enabling major projects to advance where delays might otherwise stall progress.

“Creative energy mixes can transform projects that might otherwise be unviable into attractive opportunities for hyperscale developers,” said Robert Montejo, a partner at Duane Morris who represents real estate and energy clients. “Having natural gas infrastructure developed first ensures a stable, on-demand power source.”

Conduit’s model involves pairing small gas-fired generators with grid-scale batteries to form a reliable foundation for power-intensive operations. These systems can be deployed initially for periods of up to five years, bridging the gap as data centers work toward permanent grid interconnections. Once those grid connections are in place, the generators and batteries can either transition to backup duty or be redeployed to other emerging sites with immediate needs.

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Notably, Conduit’s battery systems are designed to operate separately from battery resources provided by partners such as ENGIE. The gas engines deliver baseload power to the data halls, while Conduit’s batteries smooth power flows and provide critical black start capability after outages. This layered approach allows developers to maintain resilience without fully “islanding” facilities from the transmission grid, which Montejo noted would be cost prohibitive for most operators.

Hybrid power solutions like these also offer environmental advantages. By blending natural gas with solar and battery storage, data centers can strike a balance between reliability, cost, and emissions reduction. “All of the hyperscalers have strict sustainability goals, and blending natural gas, solar and batteries addresses the need for cheap, reliable power and reduced carbon emissions,” Montejo added.

Prometheus and ENGIE Lead Large-Scale Deployment

One of the most ambitious examples of bridge power deployment is tied to Prometheus Hyperscale, a company developing a massive 1.2 gigawatt data center campus in Wyoming. Prometheus has pledged the facility will be fully carbon-neutral, relying on low-carbon, low-water-intensity natural gas generation supported by carbon offsets. ENGIE North America, a global leader in renewable energy and low-carbon solutions, has partnered with Prometheus to help execute the project.

David Carroll, ENGIE’s chief renewables officer and senior vice president for North America, described the collaboration as a reflection of both companies’ shared approach to solving real-world energy challenges. “Our collaboration with Prometheus demonstrates our shared approach to finding innovative approaches to developing, building and operating projects that solve real world challenges,” Carroll said in a statement.

Prometheus chairman Bernard Looney, the former BP chief executive, emphasized that the project is designed to meet the next generation of digital infrastructure demand, particularly for artificial intelligence workloads. “Prometheus is committed to developing sustainable, next generation digital infrastructure for AI … we cannot do this alone,” Looney said. He highlighted ENGIE’s expertise and existing renewable energy assets as vital components of the overall plan.

The initial deployment of Conduit’s bridge power systems at Prometheus campuses will allow the data centers to come online faster than would otherwise be possible. Once full grid connections are established, the bridge systems could be retained for backup or redeployed to other regions. This flexible model underscores why bridge power has become increasingly attractive to developers racing to meet surging demand from hyperscale and cloud providers.

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Conduit Brings Oilfield Expertise to Data Centers

While the data center market is new territory for Conduit, the company has extensive experience deploying small-scale gas and battery systems at oil and gas sites. In West Texas, Conduit operates or is developing about 20 installations that each combine roughly 10 megawatts of natural gas generation with battery storage. These projects operate behind the meter or as merchant facilities, providing power directly at production sites.

The first of those deployments is expected to connect to the Electric Reliability Council of Texas (ERCOT) grid later this year. By keeping individual project sizes below 10 MW, Conduit can take advantage of ERCOT’s streamlined interconnection process, which typically requires only 12 to 18 months. This is significantly faster than the timelines for larger projects, which often face multi-year delays.

Beyond meeting immediate demand, these smaller-scale deployments support the longer-term trend of electrification in the Permian Basin and other major hydrocarbon regions. Conduit positions its systems as both a solution for reliable local power and a profitable outlet for natural gas producers seeking new markets. By converting gas directly into power, operators can tap into electricity markets while aligning with broader emissions and electrification trends.

For the data center sector, this convergence of oilfield know-how, natural gas generation, and battery technology offers a path to resilience at a time when grid bottlenecks are constraining growth. For producers in regions like West Texas, it represents an additional monetization strategy as the global energy mix continues to evolve.

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