Texas Critical Data Centers and Sharon AI, a cloud computing infrastructure platform, have made a preliminary power deal with Thunderhead Energy Solutions to develop a natural gas-fired power plant with a volume of about 250 megawatts. 

Per the agreement between the two organizations, which was secured on August 22, Thunderhead will be accountable for providing the budget for the artificial intelligence-backed data center site, which will be located in Ector County, Texas.

Thunderhead will also construct and operate the establishment using a hybrid deployment of reciprocating engines and turbines, the company said. 

Both organizations expect the construction of the power station to commence this year, with a targeted completion over the next 18 months. The power plant will serve as the “energy backbone” for Texas Critical Data Centers’ AI-driven compute campus, the companies said. 

Currently, Texas Critical Data Centers and Thunderhead are under a non-binding agreement, but once there is a full commitment for the construction, the behind-the-meter power deal will go into a definitive process, a New Era Energy & Digital spokesperson said to Connect Money. 

The AI-powered data center is set to be a “scalable” AI and high-performance computing campus with a capacity of up to 1 gigawatt, developed in collaboration with Sharon AI. 

“This partnership allows us to leverage the region’s abundant natural gas resources to deliver reliable, scalable energy solutions supporting growing digital infrastructure demand through a world-class asset,” Brennan Zaunbrecher, founder and principal of Thunderhead Energy Solutions, said. 

This is the first agreement by New Era Energy & Digital since the company rebranded from New Era Helium in August to reflect its wider shift into a vertically integrated energy supplier. 

In January, New Era Energy & Digital and Sharon AI joined forces to create a 50/50 venture, which was named the Texas Critical Data Center. The TCDC was launched to serve as a collaboration to fund, develop, and construct a 250MW net-zero energy data center within the Permian Basin. 

Recently, TCDC acquired 235 acres of land in Ector County, Texas, from Grow Odessa, a non-profit organization, and the organization has signed a letter of intent with Grow Odessa for an additional 203 acres, with the chance to expand to 438 acres.