Vema and Verne Forge Decade-Long Hydrogen Deal to Power U.S. Data Centers December 18, 2025 As the data center industry grapples with surging power demands driven by artificial intelligence and faces increasing pressure to decarbonize, a new partnership aims to provide a scalable, low-emissions energy alternative. Hydrogen producer Vema Hydrogen has entered into a ten-year hydrogen purchase and sale agreement with Verne, a provider of on-site power and cooling systems for data centers, signaling a significant step towards integrating alternative fuels into mission-critical infrastructure. Under the agreement announced this week, Vema will supply Verne with its Engineered Mineral Hydrogen (EMH), a gas produced through subsurface mineral reactions, to generate power for data center customers across the United States. Operations under the deal are slated to commence as early as 2028. The partnership is structured to scale Vema's production to more than 36,000 tons of hydrogen annually, which Verne will utilize for on-site power generation, thereby reducing data centers' reliance on constrained regional electricity grids. The core of the deal revolves around Vema's proprietary geoscience method, which targets iron-rich geological formations. The company drills into suitable sites, injects water and non-toxic catalysts to accelerate natural reactions, and collects the released hydrogen gas via production wells. This technology, according to Vema, is designed to support gigawatt-scale energy demand with high-purity hydrogen. The agreement also expands Vema's commercial footprint in California, following its recent designation as a qualified supplier to the state's First Public Hydrogen Authority. Industry executives framed the partnership as a direct response to the dual challenges of grid strain and sustainability mandates. “Artificial Intelligence is driving unprecedented demand for power, and the industry desperately needs scalable solutions like Vema’s Engineered Mineral Hydrogen,” said Ted McKlveen, co-founder and CEO of Verne. He added that the collaboration aims to offer data center operators a solution that meets both rising power needs and sustainability goals. Pierre Levin, CEO of Vema Hydrogen, emphasized the market need for baseload power independent of government incentives. “There is a robust market for baseload power generation across the US, where data centers are straining the grid,” Levin stated. “With our Engineered Mineral Hydrogen and Verne’s power solutions, data centers will have access to affordable, clean power that is not dependent on state or federal incentives.” The long-term agreement represents a notable validation for geologic hydrogen production within the digital infrastructure sector. If successfully implemented at scale, it could provide a blueprint for deploying alternative, low-carbon power generation directly at data center sites, offering a potential path to alleviate grid congestion while advancing corporate climate commitments. Source: datacenterdynamics
Vema and Verne Forge Decade-Long Hydrogen Deal to Power U.S. Data Centers
