Williams Cos. (WMB) will invest $1.6 billion for an on-site power project, according to a filing the company made with the U.S. Securities and Exchange Commission dated March 3.

The 8-K notification did not name the customer or reveal where the project would be located.

“The Williams Companies Inc. entered into an agreement with an unnamed large, investment-grade company to provide onsite natural gas and power generation infrastructure for the customer,” Williams wrote in the notification.

The midstream company did not respond to a request for comment from Hart Energy.

The company filing said the project would be completed during the second half of 2026 and noted that the project is the first “power innovation project to deliver speed-to-market solutions for growing demand in grid-constrained markets.”

The customer agreed to a 10-year, fixed-price power purchase agreement to pay for the deal, with an option to extend.

Williams said its build multiple for the project is approximately 5x EBITDA, according to the filing. The midstream company raised its estimated growth capex for 2025 by $925 million, with a new total between $2.575 billion and $2.875 billion.

Williams did not disclose further details. The company has, however, discussed ongoing discussions to supply AI data centers. Williams President and CEO Alan Armstrong discussed one such opportunity during the companies fourth-quarter earnings call on Feb. 13.

“First, as to what it takes in terms of getting things completed, I would just say, as I mentioned, we are very far along in the process and have full support from the counterparty for going ahead and acquiring the major equipment and long lead items,” Armstrong said, answering a question about what was left to complete the agreement.

The company posted an informational article, dated Feb. 25, in the newsroom subsection of its website, with the headline “Williams is powering progress for the digital age.” The story discusses the role Williams plans to play in the developing energy market for AI data centers.

Williams Cos. is one of the nation’s largest midstream companies, with a network that handles about a third of U.S. natural gas.

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