Overwatch Capital (“Overwatch”) and Japan’s Idemitsu Kosan Co., Ltd. (“Idemitsu”) have unveiled a strategic partnership to develop next-generation, energy-resilient AI data centers across ten U.S. states, in a move designed to meet soaring demand for high-density compute. The collaboration combines Idemitsu’s investment into Overwatch and the launch of its nationwide natural gas supply operations, with the potential to provide up to 1 gigawatt (GW) of on-site natural gas generation to support the next wave of AI-driven data infrastructure.
The partnership targets states including Ohio, Texas, Illinois, Utah, Colorado, Arizona, Georgia, Nevada, South Carolina, and Pennsylvania, offering long-term, firm energy supply for tenants under both grid-connected and private-grid models. It aligns Overwatch’s SIDE Platform—an integrated solution incorporating natural-gas generation, battery storage, advanced cooling, and proprietary energy management—with Idemitsu’s energy expertise and global operations.
“This partnership sets a new standard for high-density, low-carbon AI data centers, empowering our clients to deploy class-leading compute at scale while advancing resiliency and sustainability in the communities we serve,” said Sean Lyle, Managing Partner at Overwatch Capital.
Overwatch’s SIDE Platform is engineered to host next-generation GPU clusters and liquid-cooled systems at ultra-high rack power densities. Each site is designed for maximum uptime with multi-layered backup systems, microgrid independence, and enhanced energy efficiency. Idemitsu will supply natural gas to on-site generation systems and explore additional energy services, including immersion cooling technologies, diesel backup supply, and potential battery energy storage solutions.
“This collaboration with Overwatch Capital marks an important step in connecting reliable, lower-carbon energy with next-generation data infrastructure,” said John H. Happ III, Senior Vice President of Idemitsu Americas Holdings. “Demand for electricity to support AI is expected to grow rapidly, and we are committed to providing sustainable and efficient energy solutions that contribute to the advancement of an AI-enabled society.”
The partnership also positions Overwatch as a bankable platform for hyperscalers and institutional investors, combining resilient energy supply with secure, high-integrity data environments. Key features of the SIDE Platform include dual private-grid and grid-supplied energy models to mitigate interconnection risk, low-emission generation, and integration with fuel cells, immersion cooling, and other energy technologies.
Marathon Capital served as exclusive financial advisor to Overwatch, overseeing the structuring and capitalization of both corporate and project-level financing. “By combining deep energy market expertise with digital infrastructure innovation, Idemitsu and Overwatch are building the physical foundation to enable AI scale,” said J. Patrick Brandt, Vice President at Marathon Capital.
Overwatch anticipates commencing its first two projects in 2026, namely Resilience Dallas–Fort Worth and Resilience Columbus in Ohio, with plans to replicate the model across multiple states.
