# Reabold Resources Welcomes UK Data Centre Covenant for West Newton Gas-to-Compute Project

> Reabold Resources welcomes the UK's new data centre covenant, which supports on-site power generation and its proposed gas-to-compute project at West Newton.

- Published: 2026-10-29T07:58:01+00:00
- Section: Regulation & Approvals
- Author: News Desk
- URL: https://newsforagent.com/news/2026-10-29/reabold-resources-uk-data-centre-covenant
- Source: [Investegate](http://www.investegate.co.uk/announcement/rns/reabold-resources--rbd/reabold-welcomes-uk-data-centre-covenant/9846925)

## Key takeaways

- The UK Government's Budget introduced a British data centre covenant allowing compliant critical data centres to build on-site generation while awaiting grid connections.
- Reabold Resources says the covenant supports its proposed integrated gas-to-compute project at West Newton, which would use field gas for on-site power.
- A feasibility study into co-locating power generation and data centre assets at West Newton is underway, with results expected soon.

Reabold Resources plc has welcomed the UK Government's new British data centre covenant, announced in the Budget on 28 October 2026, which supports on-site power generation for critical data centres. The company said the policy backs its proposed integrated gas-to-compute project at West Newton, where gas from the field would fuel on-site power for a co-located data centre. [Investegate](http://www.investegate.co.uk/announcement/rns/reabold-resources--rbd/reabold-welcomes-uk-data-centre-covenant/9846925) published the announcement on 29 October 2026.

## How the Data Centre Covenant Works

Under the covenant, critical data centres that comply with measures to invest in local communities, create local jobs and protect local water supplies will receive the necessary grid connections. Where necessary, they will also be allowed to build on-site generation while they wait.

Reabold Resources is a UK-based upstream oil and gas investment company focused on developing strategic gas projects for European energy security. Its proposed West Newton project would use gas produced directly from the field to fuel on-site power generation for a co-located data centre, rather than drawing gas from the UK gas grid. The company said gas supplied directly from West Newton could be provided at a substantially lower cost than gas purchased from the grid, enhancing the economics of the data centre project.

Stephen Williams, Co-CEO of Reabold, said: "We welcome this update from the Government, which is a significant endorsement of the rationale behind our proposed integrated gas to compute project at West Newton, and underlines the importance of access to reliable, competitively priced power as demand for digital infrastructure accelerates."

Williams added that the company believes its direct supply model at West Newton is unique in the UK and could support domestic computing capacity without adding to demand on an already constrained gas supply system.

## West Newton Work and Earlier Reabold Moves

On 9 September 2026, Reabold announced that a feasibility study was underway to evaluate the co-location of power generation and data centre assets at West Newton. Investing.com reported that Reabold would commence preparatory work at the West Newton A-2 well for recompletion, stimulation and testing, a programme estimated at £2.5 million and funded by a £4.16 million equity placing.

On 29 May 2026, Datacenterdynamics reported that Reabold had received an Environmental Agency permit for recompletion works at the West Newton A-2 well near Hull in East Riding of Yorkshire and was actively seeking data center partners to co-locate a facility of up to 100MW on site.

On 1 July 2026, MarketScreener reported that Reabold agreed to acquire Union Jack Oil, valuing it at about GBP6.1 million, with shareholders receiving 0.051 new Reabold shares per Union Jack share.

## Feasibility Study Results Ahead

Reabold said it looks forward to sharing the results of its feasibility study at West Newton in the near future. The study evaluates the co-location of power generation and data centre assets at the field.

## Companies in this story

- Reabold Resources · website: https://reabold.com

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