Virginia's Coal Country Bets on Data Centers with 600 MW Power Plant

WISE, VA – December 18, 2025 – In a move that could reshape the economic landscape of Southwest Virginia, independent power producer Red Post Energy and development firm Wise Innovation Hub Venture (OASIS) have announced a major collaboration to build the power infrastructure for a large-scale technology and data center hub in Wise County.

The two companies have executed a Letter of Intent (LOI) to advance the “Maverick Project,” a planned 600-megawatt (MW) natural gas-fired power generation facility. The project, set to be developed in phases starting with an initial 100 MW, is designed to provide the dedicated, reliable electricity needed to attract the world's burgeoning data center industry to a region historically dependent on coal.

This partnership directly addresses what industry experts call the primary bottleneck for digital growth. "Reliable, dispatchable power is the gating factor for data center development," said Lance Medlin, Chief Executive Officer of Red Post Energy, in a statement. He emphasized that the collaboration aims to design a power solution that meets the immense scale and reliability requirements of hyperscale and enterprise data users.

For local boosters, the agreement is a landmark step toward a long-held vision of economic diversification. "OASIS is committed to positioning Wise County as a destination for advanced technology and data center investment," stated Ross Litkenhous, Partner at Wise Innovation Hub Venture. "This collaboration with Red Post Energy represents a critical step toward delivering the reliable, scalable power infrastructure that data center operators require while driving long-term economic development in Southwest Virginia."

A New Economic Frontier Beyond Coal

The announcement is not an isolated event but the culmination of years of strategic planning to pivot Southwest Virginia’s economy. As the coal industry has waned, regional leaders have aggressively courted the tech sector, leveraging local assets to build a new foundation for prosperity. This initiative builds upon the success of projects like the Mineral Gap Data Center, a Tier III certified facility already operating in Wise County, which demonstrated the region's viability.

A key blueprint for this transition was the “Project Oasis” feasibility study, an extensive analysis commissioned by the regional economic development group InvestSWVA. The study identified Wise County as an ideal location for data centers, citing abundant land, workforce readiness, and a unique opportunity for sustainable geothermal cooling using water from abandoned underground mines—a creative repurposing of the area's industrial legacy.

Local authorities have actively paved the way for such investments. The Wise County Industrial Development Authority has worked to prepare shovel-ready sites, such as the Elam Farm Industrial Site on former mine land, and local governments have passed resolutions of support, including establishing the Commonwealth's lowest regional data center equipment tax rate to create a competitive advantage.

Solving the Data Center Power Puzzle

The Maverick Project’s focus on dedicated, onsite power generation strikes at the heart of the data center industry’s biggest challenge. Northern Virginia, home to the world’s largest concentration of data centers known as “Data Center Alley,” is facing significant power constraints. The grid in that region is struggling to keep pace with voracious demand, leading to development delays and a search for new frontiers.

By proposing to build a power plant adjacent to the planned technology hub near the Lonesome Pine Regional Airport, RPE and OASIS are offering a vertically integrated solution. This model, where power generation is co-located with the data centers it serves, de-risks development for hyperscale tenants who cannot tolerate grid instability or uncertainty. The phased approach, starting at 100 MW and scaling to 600 MW, allows the power supply to grow in lockstep with demand as new data center end-users come online.

The choice of natural gas is a strategic one, prioritizing reliability and dispatchability—the ability to generate power on demand, 24/7. While renewable sources like solar and wind are growing, their intermittent nature presents challenges for an industry that requires uninterrupted uptime. Natural gas provides the firm, baseload power necessary to guarantee that the servers hosting the world's data never go dark.

Navigating Energy Goals and Infrastructure Hurdles

While the project promises economic revitalization, its reliance on natural gas places it at the intersection of technological demand and evolving environmental policy. The plan includes engaging with energy infrastructure giant Enbridge to potentially develop new natural gas pipeline capacity to service the plant. However, new fossil fuel infrastructure projects in Virginia have faced intense scrutiny and regulatory headwinds, as seen with the protracted legal and environmental battles surrounding the Mountain Valley Pipeline.

Furthermore, the Maverick Project will need to align with the Virginia Clean Economy Act (VCEA), which mandates a complete phase-out of fossil-fuel-based power generation in the state by 2045. This legislation creates a complex long-term outlook for any new natural gas facility. While the VCEA acknowledges potential energy shortfalls in the coming decade, developers will need to navigate a permitting process through the Virginia Department of Environmental Quality that balances urgent economic needs with the Commonwealth's ambitious climate goals.

This tension highlights a broader national debate: how to power the explosive growth of artificial intelligence and digital infrastructure while simultaneously transitioning to a lower-carbon energy future. For now, the partners are betting that the immediate need for reliable power will create a viable path forward for the project.

By tackling the power problem head-on, Wise County is making a bold play to capture a significant piece of the digital economy. The partnership between Red Post Energy and OASIS is more than just a plan for a power plant; it is a strategic maneuver to transform a region, redraw Virginia’s technology map, and build a resilient new engine for growth in the heart of Appalachia.