New Era Energy & Digital Partners with Stream Data Centers for Flagship TCDC Campus
MIDLAND, Texas–(BUSINESS WIRE)–New Era Energy & Digital, Inc. (Nasdaq: NUAI) (“New Era” or the “Company”), a developer and operator of next-generation digital infrastructure and integrated power assets in the Permian Basin, today announced that it has entered into a non-binding letter of intent (“LOI”) to form a joint venture for the development and financing of its Texas Critical Data Centers campus (“TCDC”) in West Texas.
The joint venture will bring New Era together with Stream Data Centers (“Stream”), a Tier-1 U.S. data center development and operating platform, with equity capital provided by a third-party sponsor and arranger of institutional capital (the “Institutional Investor”) with significant experience in digital infrastructure and energy investments.
Strategic Rationale
The LOI outlines a joint venture development structure in which New Era contributes its site control and local relationships, the Institutional Investor contributes equity capital and sources debt financing, and Stream provides its institutional-grade development, leasing and operating capabilities.
Stream is expected to serve as development manager and operator for the campus. The Institutional Investor is expected to lead project financing, which is expected to include approximately 80% debt financing on competitive market terms.
New Era’s contribution of the strategically located project site – together with the right to co-invest significant equity capital alongside the Institutional Investor- reflects the Company’s intention to remain a long-term, meaningful stakeholder in the venture, not merely a land seller.
New Era’s equity position in the venture is expected to generate distributions from operating cash flow after commercial operations of the first phase commence, providing a near-term path to recurring revenue.
The project is expected to be structured through a newly formed Delaware limited liability company, governed by an operating agreement providing New Era with appropriate governance protections and associated rights.
This approach reflects New Era’s capital-efficient development model and repeatable platform strategy, whereby projects are advanced through partnerships with experienced operators and institutional capital at the asset level.
Development and Capital Partners
Stream is a leading U.S. data center development and operating platform, backed by one of the world’s largest alternative asset managers, with a track record of developing, financing, and delivering large-scale data center campuses across North America. The platform maintains relationships with leading cloud and technology companies and operates a portfolio of significant scale across key U.S. data center markets.
The Institutional Investor is a premier sponsor and arranger of institutional equity and debt capital with experience in digital infrastructure and energy investments, and a track record of providing large-scale financing solutions for complex infrastructure projects.
Management Commentary
E. Will Gray II, Chief Executive Officer of New Era, said:
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,
“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
TCDC Campus Overview
TCDC represents a foundational deployment of New Era’s development platform and is positioned to support large-scale AI and HPC computing workloads for hyperscalers.
TCDC is located in the Permian Basin of West Texas, a region with significant energy resources and growing relevance for data center development.
- 438 acres owned, plus a 54-acre corridor pending (Ector County, Texas)
- Adjacent to generation assets operated by Vistra and Calpine
- Designed for phased expansion toward 1+ GW of total capacity
- Expected to be delivered in three phases on land contributed by New Era
- Phase 1: ~200 MW of utility-powered capacity
- Phase 2: ~450 MW of on-site gas-fired generation capacity
- Phase 3: scales the campus to over 1 GW of total capacity
- Behind-the-meter power strategy designed to enhance power certainty and delivery speed
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New Era Energy & Digital Partners with Stream Data Centers for Flagship TCDC Campus, source
