New Era Energy & Digital has moved to consolidate ownership of a major West Texas data center project, announcing a binding agreement that will give the company full control of Texas Critical Data Centers LLC (TCDC) and significantly expand the project’s footprint in Ector County, according to a press release distributed by Business Wire.
The Midland-based company announced that it has agreed to acquire Sharon AI’s 50% ownership stake in TCDC for $70 million, a deal structured through a combination of cash, equity, and a senior secured convertible promissory note. Once the transaction closes, pending customary approvals, New Era will own 100% of the hyperscale data center development, located outside Odessa, which is positioned to support large-scale AI and high-performance computing operations.
Under the agreement, New Era will make a $10 million upfront cash payment, issue $10 million in deferred equity in March 2026, and provide a $50 million senior secured promissory note that includes limited conversion rights. Company executives stated that the structure was designed to minimize shareholder dilution while enhancing operational flexibility as the project transitions from planning to execution.
Alongside the ownership agreement, New Era also completed the purchase of an additional 203 contiguous acres next to the existing site. This acquisition expands the total TCDC campus to 438 acres, giving the company room to develop a multi-phase, large-scale AI and HPC data center campus. Over the past year, the project has advanced through land aggregation, engineering work, power interconnection studies, and early commercial engagement.
CEO E. Will Gray II said that full ownership will enable the company to align capital and development decisions more effectively, accelerate execution, and create long-term value for shareholders. He added that New Era is shifting away from a “neocloud” model toward a more infrastructure-focused, “pick-and-shovel” approach as demand for data center capacity continues to grow.
Source: Business Wire
Company: New Era Energy & Digital, Inc. (Nasdaq: NUAI)
Original release:
https://www.businesswire.com/news/home/20251223632678/en/New-Era-Energy-Digital-Secures-Full-Ownership-of-Texas-Critical-Data-Centers-Through-Binding-Agreement-Completes-203-Acre-Land-Acquisition-Expanding-TCDC-Campus-in-Ector-County-Texas