MPLX and MARA Forge Partnership for Energy and Data Center Expansion in Texas

MPLX LP (NYSE: MPLX) and MARA Holdings, Inc. (NASDAQ: MARA) have announced a strategic collaboration to develop integrated power generation and data center campuses in West Texas. This initiative, formalized through a letter of intent (LOI), aims to leverage local natural gas resources to meet the region's growing energy and computing demands, according to MARA.

Project Details

Under the terms of the LOI, MPLX will supply natural gas from its Delaware basin processing plants to MARA's planned gas-fired electricity generation facilities. These facilities are designed to provide reliable and scalable energy solutions, initially offering a capacity of 400 megawatts (MW) with the potential to expand to 1.5 gigawatts (GW). These power generation sites will support MARA's data center campuses and MPLX's operations, enhancing energy reliability for existing customers in the region.

Strategic Advantages

The collaboration is set to create in-basin demand for natural gas and improve the overall energy value chain. Maryann Mannen, President and CEO of MPLX, highlighted the benefits of this partnership, stating it would enhance power reliability and benefit current producer-customers. Fred Thiel, Chairman and CEO of MARA, emphasized the strategic advantage of accessing lower-cost local natural gas, which will support the development of high-performance, efficient data center infrastructures.

Future Prospects

MARA plans to transition from dynamic mining loads to advanced AI and high-performance computing (HPC) workloads as the project scales, aiming to maximize value for stakeholders. The company will own and operate the power facilities and data centers, while MPLX will supply natural gas and receive electricity under a tolling agreement.

Regulatory and Developmental Steps

The proposed initiatives remain contingent on the negotiation and execution of definitive agreements, regulatory approvals, and other conditions. Both companies are conducting due diligence to ensure the project's feasibility and success.

About the Companies

MPLX is a diversified master limited partnership with extensive midstream energy infrastructure and logistics assets. MARA focuses on deploying digital energy technologies to transform excess energy into digital capital, supporting infrastructure development and energy system advancements.