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Partnership to Power Data Centers with Natural Gas & Methane

Data Centers

Business Honor
14 March, 2025

Powering data centers efficiently with innovative energy and sustainable infrastructure solutions.

The companies Diversified Energy, FuelCell Energy, and TESIAC have entered into a partnership to create off-grid data center power solutions with natural gas and methane from coal mines. The partnership targets in-basin natural gas production, fuel cell technology, and infrastructure financing to develop an energy solution that is scalable and sustainable.

Under the agreement, natural gas and methane will be drawn out of coal mines by Diversified Energy and piped to FuelCell Energy's fuel cells. The cells will produce electricity through electrochemical conversion of methane to hydrogen. TESIAC will arrange financing for the project.

The firms announced that fiber-connected locations with the ability to scale to hundreds of megawatts have been found and could be operational in two years. No specific locations were named, but a recent FuelCell Energy earnings presentation said as much as 360 MW of power could be delivered to locations in Virginia, West Virginia, and Kentucky.

LSE- and NYSE-listed Diversified Energy has expertise in natural gas and liquids throughout the U.S. President and CFO Brad Gray noted that their asset base in the Appalachian Region is perfectly situated to provide increasing demand for clean, fast-dispatchable power for data centers.

TESIAC, an investment and development company, highlighted the economic and environmental values of the partnership, such as employment generation and methane emissions minimization. Managing partner Karen Morgan stated that the project aligns energy supply stabilization with regional economic growth potential.