As demand for high-performance computing infrastructure accelerates, New Era Energy & Digital has signed a non-binding letter of intent to form a joint venture for developing its Texas Critical Data Centers (TCDC) campus in West Texas. Through this initiative, the company is partnering with Stream Data Centers and an institutional investor to advance large-scale, next-generation data center infrastructure.
As AI and hyperscale computing workloads continue to expand, the need for power-ready, scalable data center environments has become increasingly critical. Therefore, the joint venture brings together complementary strengths, with New Era contributing site control and regional expertise, the institutional investor providing equity and debt financing, and Stream delivering development, leasing, and operational capabilities. As a result, the collaboration is designed to accelerate project execution while maintaining capital efficiency.
Moreover, Stream is expected to act as both development manager and operator of the campus, while the institutional investor will lead financing efforts, including approximately 80% debt funding under competitive market terms. At the same time, New Era plans to co-invest alongside its partners, reinforcing its long-term commitment to the project rather than acting solely as a land provider. Consequently, the company aims to generate recurring revenue through operational cash flow once the initial phase becomes active.
“The fact that Stream and a premier provider of infrastructure capital have chosen to partner with New Era validates both the strategic value of the TCDC campus and the strength of our development strategy and platform,” said E. Will Gray II, Chief Executive Officer of New Era.
“This LOI represents an important step in advancing TCDC toward delivery, and we remain focused on progressing toward a definitive agreement with Stream. We expect to invest alongside our partner given our conviction in this project, this market, and the growing need for purpose-built, power-ready data center infrastructure. Our structure is designed to position New Era as an ongoing participant in the asset’s economics as the campus is developed.”
Michael Lahoud, Stream Chief Executive Officer, stated, “We are proud to be partnered with New Era to build out a world scale data center in West Texas, which is quickly becoming a premier data center territory.”
Furthermore, the project will be structured through a newly formed Delaware limited liability company, ensuring governance protections and strategic alignment among stakeholders. This structure reflects New Era’s broader development model, which focuses on partnering with experienced operators and institutional investors to scale infrastructure projects efficiently.
In addition, the TCDC campus represents a cornerstone of New Era’s long-term strategy, designed to support AI and high-performance computing (HPC) workloads for hyperscalers. Located in the Permian Basin, the site benefits from proximity to major energy assets, enhancing its appeal for large-scale data center deployments.
The campus spans 438 acres, with an additional 54-acre corridor pending, and is planned for phased expansion exceeding 1 GW of total capacity. Initially, Phase 1 will deliver approximately 200 MW of utility-powered capacity. Subsequently, Phase 2 will introduce around 450 MW of on-site gas-fired generation, while Phase 3 will scale the campus beyond 1 GW. This phased approach, combined with a behind-the-meter power strategy, ensures greater energy reliability and faster deployment timelines.
Ultimately, this joint venture underscores a broader shift toward integrated digital and energy infrastructure. By combining strategic location, scalable power resources, and strong industry partnerships, New Era is positioning itself to meet the growing demand for next-generation data center capacity while maintaining a long-term stake in the evolving digital economy.
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