New Era Helium and Sharon AI Expand and Accelerate Plans for a Net-Zero Energy Data Center in the Permian Basin
MIDLAND, Texas–(BUSINESS WIRE)–New Era Helium, Inc. (Nasdaq:NEHC) (“NEH,” “New Era Helium” or the “Company”), an exploration and production (E&P) company sourcing helium produced in association with natural gas reserves within the Permian Basin, is pleased to announce significant progress on its 50/50 joint venture (“JV”) with Sharon AI, Inc. (“Sharon AI”), a High-Performance Computing business specializing in Artificial Intelligence, Cloud GPU Compute Infrastructure, and Cloud Storage.
The two companies have executed a binding letter of intent (LOI) to develop and operate a 250MW net-zero energy data center in the Permian Basin, a significant increase from the originally announced 90MW facility [read here]. This expansion reflects heightened demand for power from potential off-takers and highlights the strategic importance of the planned data center in Texas. The project aligns with both companies’ commitment to leverage clean energy solutions and innovative technologies to address the growing needs of the high-growth data industry.
Key updates include:
- Binding LOI Signed: Sharon AI and New Era Helium have formalized their commitment by signing a binding Letter of Intent (LOI) from a previously announced non-binding LOI.
- Increased Capacity: The proposed data center’s capacity has been significantly expanded to 250MW from 90MW following due diligence and discussions with prospective clients seeking access to additional electricity.
- Location Finalized: After extensive evaluations, the joint venture has narrowed the site selection to a prime location within the prolific Permian Basin in West Texas.
- Definitive Agreement Timeline: The companies anticipate formalizing the joint venture agreement on or before December 23, 2024.
- Gas Supply Agreement: As part of the joint venture agreement, New Era Helium will enter into a gas supply agreement at a mutually agreed fixed cost for five years plus three options of five years each.
Sharon AI will continue to be the exclusive AI/HPC provider and to design, build and operate the high density, liquid cooled, Tier III data center at the project site. Sharon AI also expects to work with its ecosystem relationships, including NVIDIA and Lenovo, on the data center, GPU, network architecture and design, which is expected to deliver optimal performance for AI/HPC training and inference workloads.
New Era Helium will be the exclusive provider and build partner of the energy infrastructure required to power the project, including gas-fired power plant design and construction, CO2 carbon capture and associated pipeline works.
The initial 250MW gas-fired power plant has the potential to significantly expand over time, with the JV partners working to identify project expansion opportunities, including with offtake partners, which may include hyperscalers and other large energy users.
E. Will Gray II, CEO of New Era Helium, Inc. commented:
This JV partnership with Sharon AI highlights our commitment to innovative energy solutions and represents a significant step forward, building on the momentum of our successful trading debut on Nasdaq this past Monday.
“Our public listing reflects New Era Helium’s ability to support today’s high-growth, in-demand industries with environmentally responsible energy solutions. Together with Sharon AI, we believe we are well-positioned to deliver cutting-edge energy infrastructure that meets the evolving demands of the AI-driven digital age.”
Wolf Schubert, CEO of Sharon AI Inc. commented:
We are excited that initial planning and scoping is now complete, marking a crucial step in our JV project with New Era Helium.
“We look forward to advancing into the engineering phase and engaging in further offtake discussions, which will bring us closer to delivering this groundbreaking net-zero energy data center in the Permian Basin.”
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New Era Helium and Sharon AI Expand and Accelerate Plans for a Net-Zero Energy Data Center in the Permian Basin, source
