Oil and gas producers’ power needs are increasing in the West Texas region, with Diamondback Energy Inc.'s CEO predicting his company’s need for power will double over the next decade.

Electricity consumption in the Permian Basin has been increasing as companies switch to electrified gear and data centers are developed, with Citigroup Inc. analysts warning of potential outages next summer.

The region’s rapid drilling expansion has led to long wait times to get connected to the grid, prompting producers to build microgrids and pipeline owners to expand their offerings to serve data centers.