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 Midland, Texas: New Era Helium and Sharon AI Join Forces

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

A Win for Clean Energy

This recent partnership, a solid 50/50 joint venture, follows a binding letter of intent signed back in December 2024. The project is all about harnessing clean energy solutions to meet the rising demands of industries that rely heavily on artificial intelligence and high-performance computing. Texas is truly on the map as the go-to hub for transformative technology while being environmentally conscious. How about that for a win-win situation?

Strategic Energy Supply

As part of the grand plan, New Era Helium is engaging in talks to secure a long-term gas supply agreement with Texas Critical Data Centers. They’re expecting to lock in this agreement within the next 30 days. This deal is poised to offer a fixed price for natural gas over the next five years, with an exciting possibility of extending it for another 15 years! Yes, that’s a solid 20-year agreement ensuring a stable energy supply for this groundbreaking project.

Setting the Stage for Success

This data center isn’t just about providing low-cost, net-zero energy options; it’s strategically placed to address the increasing energy needs of AI and high-performance computing workloads. Multiple sites have already been earmarked in the Permian Basin that can leverage existing transmission lines—talk about a solid backbone of infrastructure! And let’s not forget the close proximity to current fiber optic cable setups, which are absolutely essential for speedy data transfers and connectivity.

Taking Advantage of Incentives

In a savvy move, Texas Critical Data Centers is also working on securing 45Q Tax Credits related to Carbon Capture Utilization and Storage (CCUS). These financial incentives could significantly benefit the project, advancing its sustainability goals while also attracting further investments. It’s a clever way to not only support the environment, but also to foster economic growth within the region.

Looking Ahead

There’s palpable excitement about the project timeline, as the goal is to announce the final site selection for the data center by Q1 2025. After that, there are crucial milestones to hit, including site entitlements, deciding on power generation systems, and selecting CO2 capture technology. The companies are also eager to connect with potential offtake partners, such as hyperscalers and other significant energy consumers, to truly realize the project’s vast potential.

What This Means for Texas

This dynamic joint venture underscores Texas’s commitment to spearheading innovative energy infrastructure, especially as we navigate through a digital landscape increasingly reliant on AI technology. This collaboration not only ramps up the local economy but also places Texas at the forefront in the race for sustainable energy solutions. A bright future lies ahead, with even more advancements likely on the horizon!

Deeper Dive: News & Info About This Topic

• Business Wire: New Era Helium and Sharon AI Finalize Joint Venture
• Hart Energy: New Era Helium, Sharon AI Cement Permian Basin Data Center JV
• Data Center Frontier: New Data Center Investments Bank on Future of AI HPC Facilities
• GlobeNewswire: Demand for Helium Becoming High-Value Commodity
• Wikipedia: Permian Basin