QPM Energy (ASX:QPM) plans to explore opportunities to grow its gas production and electricity generation asset base through the co-location of data center assets with its Issac Energy Hub in Queensland, according to a Monday filing with the Australian bourse.

QPM said it held preliminary talks with data center firms, and the planned co-location of data center assets will create "attractive expansion opportunities for the company's assets."

It added that its 112 megawatt Isaac Power Station and associated infrastructure "provides the perfect platform to support large-scale data center electricity requirements."

The company pointed to a faster-than-expected increase in electricity consumption by data centers, citing updated Australian Energy Market Operator forecasts, and said the higher demand comes alongside anticipated retirements of coal-fired power stations.

QPM Energy shares gained 5% in recent Monday trade.