Sapphire Technologies and Anax Power to build modular data centers attached to gas pipelines
Type: Partnership · Technology: Data Center · Country: United States · Announced: 2026-09-17
Sapphire Technologies and Anax Power have formed a partnership to deploy modular data centers directly onto US gas pipeline infrastructure. Sapphire will supply its turbo expander technology, which harnesses pipeline pressure differential to generate electricity and cold cooling fluid for the data centers, while Anax Power handles data center construction and operation. The first project will be built at an undisclosed location and leased to Magellen Scientific, a Bitcoin mining company. Sapphire's technology can recover high-pressure energy from gas pipelines to spin generators and create material temperature drops, offering both power and cooling capacity to data centers positioned near pressure-regulating stations. The companies intend to scale this deployment across the pipeline network, leveraging the limited number of pipeline owners to simplify repeat installations. For smaller edge data centers, the turbo expander could meet all cooling and power needs, while for larger AI campuses, multiple units (eight to ten) would be required to achieve meaningful opex reductions of approximately 2 percent across power and cooling systems.
Analysis
Sapphire Technologies and Anax Power announced on September 17, 2026 a partnership to deploy modular data centers on U.S. gas pipeline infrastructure, with Sapphire supplying turbo expander technology and Anax building and operating the facilities, and the first site leased to Bitcoin miner Magellen Scientific. Sapphire’s turbo expander will capture pipeline pressure differentials to generate electricity and cooling fluid for the data centers. Anax Power will construct and run the modular data centers attached to the pipelines. The initial project will be located at an undisclosed site in the United States. The deal was announced on September 17, 2026 and no financial terms were disclosed.
Key points
- Sapphire Technologies provides turbo expander technology that converts pipeline pressure into electricity and cooling fluid
- Anax Power handles construction and operation of the modular data centers
- First data center will be leased to Magellen Scientific, a Bitcoin mining company
- Announcement date: September 17, 2026
- Location: United States (undisclosed site)
Counterparties
- Anax Power (Partner)
- Sapphire Technologies (Partner)
- Magellen Scientific (Offtaker)
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