New Era Energy Unveils $1B+ Texas AI Data Center Campus Plan
New Era Energy & Digital, Inc. (Nasdaq: NUAI) has announced plans to form a joint venture for its Texas Critical Data Centers campus (TCDC) in West Texas. The agreement, outlined in a non-binding letter of intent, brings together New Era, Stream Data Centers, and an unnamed institutional investor with expertise in digital infrastructure and energy.
The project aims to develop a large-scale data centre campus designed to support AI and high-performance computing (HPC) workloads for major tech firms. The TCDC campus sits on 438 acres in the Permian Basin, with an additional 54-acre corridor under negotiation. Once fully developed, the site will support over 1 gigawatt (GW) of total capacity, built in phases.
Phase 1 will deliver around 200 megawatts (MW) of utility-powered capacity. Phase 2 will add approximately 450 MW of on-site gas-fired generation, while Phase 3 will expand the campus beyond 1 GW. Stream Data Centers will oversee development and operations, ensuring the project meets technical and operational standards.
Financing for the venture is expected to include around 80% debt on competitive market terms, led by the institutional investor. New Era will contribute its site control, local industry relationships, and the option to co-invest significant equity alongside the investor. Once operational, the company anticipates receiving distributions from the venture's operating cash flow.
The campus is strategically positioned to cater to hyperscale clients requiring large-scale computing power for AI and HPC applications. Its phased approach allows for scalable growth in line with demand from major technology firms. The joint venture combines New Era's site assets, Stream Data Centers' operational expertise, and the institutional investor's financial backing. If successful, the project will create a major data infrastructure hub in West Texas, capable of supporting high-demand computing workloads. Construction and financing timelines will depend on finalising the binding agreements and securing necessary approvals.
