New Era Helium and Sharon AI Launch Data Center Venture

News Summary

New Era Helium, Inc. has partnered with Sharon AI, Inc. to develop a 250MW net-zero energy data center in the Permian Basin, Texas. This joint venture aims to leverage clean energy to meet the growing demands of AI and high-performance computing. They are in negotiations for a long-term gas supply agreement, with significant incentives from tax credits for carbon capture, setting the stage for Texas to become a leader in sustainable energy solutions while boosting the local economy.

Big Changes Coming to the Permian Basin: New Era Helium and Sharon AI Join Forces

In the heart of Texas, Midland is buzzing with exciting news! New Era Helium, Inc. has officially teamed up with Sharon AI, Inc. to create a new venture that’s set to revolutionize the data center landscape in the region. The two companies are rolling with a ambitious plan to construct a 250MW net-zero energy data center in the promising Permian Basin.

A Win for Clean Energy

This recent partnership, which is a solid 50/50 joint venture, comes just after a binding letter of intent was signed back in December 2024. This project is all about tapping into clean energy solutions and addressing the increasing demands of industries relying on artificial intelligence and high-performance computing. It’s like Texas is becoming the go-to hub for innovative technology while also keeping it environmentally friendly. How about that for a win-win situation?

Strategic Energy Supply

As part of the plan, New Era Helium is currently in talks to secure a long-term gas supply agreement with the newly formed Texas Critical Data Centers. This agreement is expected to be locked in within the next 30 days, resulting in a fixed price for natural gas over a five-year period, with the possibility of extending it for another 15 years. Yes, you heard it right! That’s a whopping 20-year agreement that ensures a stable energy supply for this ambitious project.

Setting the Stage for Success

The data center will not only look at providing low-cost, net-zero energy, but will also be strategically located to meet the growing energy needs of AI and HPC workloads. Multiple sites have already been pinpointed in the Permian Basin to make the most of existing transmission lines, giving the project a solid backbone of infrastructure. And let’s not forget the closeness to existing fiber optic cable setups, which are crucial for fast data transfer and connectivity.

Taking Advantage of Incentives

In a smart move, Texas Critical Data Centers is also working on accessing 45Q Tax Credits that relate to Carbon Capture Utilization and Storage (CCUS). These financial incentives could play a significant role in propelling the project forward, boosting its sustainability efforts while drawing in further investment. It’s a clever strategy to not only benefit the environment but also promote economic growth in the region.

Looking Ahead

Eager anticipation surrounds the timeline for the project, as the goal is to announce the final site selection for the data center by Q1 2025. Following this, there are several key milestones to hit, including site entitlements, settling on power generation systems, and selecting CO2 capture technology. The companies are also looking to engage with potential offtake partners, such as hyperscalers and other significant energy consumers, to fully realize the project’s potential.

What This Means for Texas

This exciting joint venture highlights Texas’s commitment to leading the way in innovative energy infrastructure, especially as we navigate through a digital world that increasingly relies on AI technology. The collaboration not only boosts the local economy but also positions Texas as a front-runner in the race for sustainable energy solutions. It’s a bright future ahead, with more advancements likely on the horizon!