Shares of New Era Helium Inc. (NASDAQ:NEHC) surged 20% following the announcement that its joint venture with Sharon AI, known as Texas Critical Data Centers LLC (TCDC), has signed a non-binding Letter of Intent (LOI) with a top-tier global cloud services provider focused on artificial intelligence workloads.
The agreement outlines potential collaboration on a large-scale data center project in the Permian Basin. TCDC plans to secure land and finalize a power purchase agreement for up to 250 megawatts of behind-the-meter electricity, aimed at supporting high-performance computing infrastructure.
The unnamed cloud firm, which is expanding its AI operations globally, has earmarked TCDC’s site in Ector County, Texas as a possible location to grow its presence in the United States.
Formed in 2024, TCDC is developing a 250MW campus dedicated to artificial intelligence and high-performance computing (HPC). The facility is designed to accommodate increasing demand for cloud-based GPU infrastructure, integrating cutting-edge energy management and cooling systems to boost operational efficiency.
Currently, the joint venture is wrapping up due diligence on 235 acres of land, with a transaction closing scheduled for on or before July 10, 2025. Additional milestones, such as updates on natural gas supply arrangements and electrical grid integration, are expected soon.
E. Will Gray II, CEO of New Era Helium, called the LOI “a pivotal step in aligning our energy platform with the surging demand for AI infrastructure,” adding that the company is positioning itself “at the intersection of energy and innovation.”