Japan's Idemitsu Kosan has formed a strategic partnership with US-based Overwatch Capital to develop energy-resilient AI data centers across ten U.S. states. The collaboration involves an investment by Idemitsu into Overwatch and the launch of Idemitsu's U.S. natural gas supply operations to power facilities capable of generating up to 1 gigawatt of electricity.

“Demand for electricity to support AI is set to skyrocket,” said John H. Happ III, Senior Vice President at Idemitsu Americas. “This collaboration with Overwatch Capital connects reliable, low-carbon energy with next-generation data infrastructure, delivering sustainable, efficient energy solutions for the AI society of tomorrow.” 

Overwatch Capital is developing high-density AI data centers with on-site gas power systems, designed to provide resilient, low-carbon energy while meeting the massive compute demands of modern AI applications. “This partnership sets a new standard for AI data centers,” said Sean Lyle, Managing Partner at Overwatch Capital. “It empowers clients to deploy class-leading compute at scale while advancing sustainability and resilience in the communities we serve.” 

Through this venture, Idemitsu plans to leverage decades of experience in energy services—including immersion cooling, backup fuel supply, and battery storage—expanding its reach into data center energy solutions and accelerating the globalization of its business.