Texas Critical Data Center to Build 250MW Data Center with a Focus on AI and HPC Demands
New Era Helium and Sharon AI have finalized the formation of a 50/50 joint venture, named Texas Critical Data Center, aimed at developing a cutting-edge natural gas-powered data center in the heart of the Permian Basin. This collaboration will see the construction of a 250MW data center to support the ever-expanding demands of high-performance computing (HPC) and artificial intelligence (AI) workloads. The project is poised to play a pivotal role in the growing digital infrastructure needs of the AI-driven world.
What Is Texas Critical Data Center’s Role in the Project?
Texas Critical Data Center will oversee the funding, development, and construction of the new data center. The initiative will focus on providing state-of-the-art energy infrastructure, with a significant emphasis on using natural gas as a sustainable power source. This venture is a response to the increasing demand for robust data processing capabilities needed for AI and HPC applications.
The joint venture’s key development milestone includes negotiating a long-term gas supply agreement with New Era Helium, expected to be finalized within the next 30 days. This supply agreement will ensure a reliable and cost-effective energy source for the data center, with a fixed cost for five years and three additional five-year options, providing stability for the long-term operation.
Energy Infrastructure: Natural Gas and Carbon Capture
New Era Helium, renowned for its expertise in natural gas production, will be responsible for designing and constructing the essential gas-fired power plant for the data center. Additionally, the company will implement carbon capture and storage (CCS) technologies, aligning the project with sustainable energy practices. The proposed gas pipeline infrastructure will ensure a seamless energy supply for the data center’s extensive operational needs.
Site Selection and Project Timeline
The joint venture is currently in the process of finalizing the site for the data center, with plans to complete this phase by Q1 2025. The original agreement, signed in November 2024, identified the Pecos Slope Field in New Mexico as a potential location. However, following an increase in the planned data center capacity—expanded from an initial 90MW to 250MW—the project team has shifted focus to the Permian Basin. This new location provides access to New Era’s natural gas reserves while being strategically positioned near essential infrastructure such as fiber optic cables.
Sharon AI: A Key Player in the AI Cloud GPU Compute Sector
Sharon AI, a high-performance computing company, will bring its expertise in AI cloud GPU infrastructure to the joint venture. The company is known for its impressive GPU offerings, including Nvidia L40S, H100, and AMD MI3000X, housed at major data centers like Equinix and NextDC. Additionally, Sharon AI operates custom-built Modular Data Centers (MDCs) that will play a vital role in the data center’s operations.
Founded in 2024, Sharon AI’s focus is on providing high-performance cloud-based computing solutions, and its collaboration with New Era Helium positions it as a key player in the development of cutting-edge data center infrastructure.
New Era Helium: A Leader in Helium and Natural Gas Production
New Era Helium, an exploration and production company, specializes in extracting helium produced alongside natural gas reserves in the United States. The company has made headlines with its recent public debut following a merger with Roth CH. Now trading on the Nasdaq under its new name, New Era Helium is poised to become a major contributor to the energy sector, with its involvement in the Texas Critical Data Center project marking a key milestone in its business strategy.
Frequently Asked Questions (FAQs)
1. What is the main objective of the Texas Critical Data Center project?
The primary goal of the Texas Critical Data Center project is to construct a 250MW natural gas-powered data center to meet the growing energy demands of AI and high-performance computing workloads.
2. How will New Era Helium support the development of the data center?
New Era Helium will provide the energy infrastructure required, including the design and construction of a gas-fired power plant, carbon capture and storage systems, and the necessary pipeline infrastructure.
3. Where will the Texas Critical Data Center be located?
The data center will be located in the Permian Basin, Texas, after initial plans to build in the Pecos Slope Field in New Mexico were adjusted to accommodate increased power requirements and proximity to key infrastructure.
4. What role does Sharon AI play in the project?
Sharon AI will supply high-performance computing infrastructure, particularly focusing on AI cloud GPU computing, and will leverage its expertise in modular data center designs.
5. What is the expected timeline for the Texas Critical Data Center?
The site selection for the data center is expected to be completed by Q1 2025, with the project progressing into construction and development thereafter.
