Diamondback Energy (FANG) said Tuesday it is looking to establish a joint venture to provide the electricity requirements of its Permian Basin operations and data centers in West Texas.

"There's been a lot of discussion around power in the basin," Diamondback President and Chief Financial Officer Kaes Van't Hof said at an investor call, according to a transcript provided by FactSet. "Obviously were short power in the basin."

The oil and gas company intends to form a partnership with a large independent power producer for a gas-fired power plant, with a "hyperscaler data center operator taking on the lion's share of that power," he said.

Diamondback spent $70 million to $100 million annually on power over last five or six years, Van't Hof said.

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