Next-generation reactor company Oklo Inc. is teaming up with Diamondback Energy Inc. to bring Oklo’s Aurora Powerhouse units to the American Southwest.

The companies signed a nonbinding letter of intent (LOI) this week to collaborate on a 20-year power purchase agreement that would provide 50 MW of electricity per unit to Diamondback’s Permian Basin operations area. The agreement lays out options to renew and extend the agreement for an additional 20-year term, since the units are designed to operate for 40 years without needing to refuel. Diamondback is an independent oil and gas company headquartered in Texas.

The spread of “electricity-hungry data centers and clean-technology factories” throughout the United States is “leaving utilities and regulators grasping for credible plans to expand the nation’s creaking power grid,” according to a recent article in the Washington Post. According to the report, the surge in industrial power requirements due to such factors as innovation in artificial intelligence (AI) and the corresponding construction of large computing infrastructure, is prompting some officials to “look beyond the grid” to ease the “grid bottleneck” and meet electricity demands.

Energy and security company IP3 has announced an agreement with Green Energy Partners (GEP), a property and project development firm, to pursue clean energy projects by establishing the Surry Green Energy Center “to implement innovative commercial plans targeting baseload and industrial energy needs in Virginia.”