Midland, Texas-based E&P New Era Helium (NEH) has signed a letter of intent for a 50-50 joint venture with Sharon AI Inc. to accelerate a net zero energy data center in the Permian Basin, the company said Dec. 11.
The companies are exploring the development and operation of a 250-megawatt (MW) net-zero energy data center, a significant increase from an originally envisioned 90-MW facility announced by the company on Nov. 12. The expansion reflects heightened demand for power from potential off-takers and highlights the strategic importance of the planned data center in Texas, NEH said in a press release.
The project aligns with both companies’ commitment to leveraging clean energy solutions and innovative technologies to address the growing needs of the high-growth data industry.
The companies anticipate formalizing the joint venture agreement by Dec. 23.
As part of the joint venture, NEH would enter into a gas supply agreement at a mutually agreed fixed cost for five years with three options of five years each.
NEH operates through two subsidiaries: Solis Partners, which owns natural gas- and NGL-producing assets, and NEH Midstream, which will operate a helium refining plant and gathering system in Chaves County, New Mexico.
Under the terms of the agreement, New Era Helium would 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 company operates more than 137,000 gross acres in the Northwest Shelf of the Permian Basin, around 20 miles north of Roswell, New Mexico. Sharon AI is a high-performance computing business specializing in artificial intelligence, cloud GPU compute infrastructure and cloud storage.
NEH began trading on the NASDAQ exchange on Dec. 9, two days after the company completed a business combination with a blank-check company backed by Roth Capital Partners.
E. Will Gray II, CEO of New Era Helium Inc., said the partnership with Sharon AI highlights the company’s commitment to innovative energy solutions and represents a significant step forward, “building on the momentum of our successful trading debut” on NASDAQ.
“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,” Gray said.
Sharon AI CEO Wolf Schubert said initial planning and scoping is now complete, marking a crucial step in the project.
“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,” Schubert said.