PowerPlay AI and Sharon AI Form JV for 400MW Gas-Powered Data Center in Abilene, Texas

A newly established firm, PowerPlay AI, has announced plans to develop a 400MW natural gas-powered data center near Abilene, Texas, in partnership with neocloud provider Sharon AI through a joint venture (JV). The project is designed to operate behind the meter, bypassing traditional grid interconnection delays to deliver power directly to the facility.

The announcement follows the completion of site feasibility work, infrastructure assessments, and land assembly and acquisition, according to PowerPlay. The JV has now entered its execution phase, with efforts underway to secure natural gas service agreements and select an independent power producer. The project targets delivery of 400MW of power by 2028.

The move reflects a broader industry shift toward behind-the-meter power solutions as data center operators face unprecedented demand for AI compute capacity. With interconnection queues stretching into the 2030s, developers are increasingly pursuing on-site energy generation to accelerate time-to-power and reduce reliance on an overburdened grid.

PowerPlay AI is a newly formed entity with limited public information available beyond its press release, website, and LinkedIn presence. The company has disclosed Luke Velterop as its lead executive. Velterop, an Australian energy executive based in the U.S., brings a background in junior energy and hydrogen exploration rather than traditional data center development. He also serves as CEO of Top End Energy, an Australian micro-cap exploration company focused on natural hydrogen and gas projects, including a venture in Kansas.

"Demand is accelerating faster than the grid can respond, interconnection queues now stretch into the 2030s, and competition for sites that can deliver scalable power at speed has never been greater. At the same time, federal policy is calling on industry to 'build, bring or buy' the energy this demand requires," said Velterop. "Against that backdrop, PowerPlay AI is advancing a strategically positioned development where pipelines, policy and people converge to drive rapid execution. Together with our joint venture partner, we're combining a power-first strategy with world-class AI infrastructure expertise to deliver the next wave of energized AI compute at speed."

Sharon AI, an Australian neocloud founded in 2024, focuses on developing AI data centers and high-performance computing platforms. The company has recently signed several major agreements, including a $950 million cloud deal with an unnamed technology firm and a $1.25 billion capacity agreement with ESDS Software Solutions. Earlier this year, Sharon AI withdrew from a proposed behind-the-meter project with Texas Critical Data Centers, making this new JV a significant pivot in its U.S. strategy.

The Abilene project underscores the growing convergence of energy and AI infrastructure, as developers seek sites with access to natural gas pipelines and supportive policy environments. Texas, with its deregulated energy market and pro-development stance, has become a hotspot for such initiatives. The success of this JV could set a precedent for similar partnerships, highlighting the critical role of power-first strategies in meeting the demands of next-generation AI workloads.