New Era Energy & Digital has taken a major step toward delivering one of the US’ most ambitious AI-focused data infrastructure projects, announcing a joint venture with Stream Data Centers to develop the Texas Critical Data Centers (TCDC) campus in West Texas. The agreement, structured as a non-binding letter of intent (LOI), brings together development expertise, institutional capital, and integrated power infrastructure in a bid to accelerate hyperscale data center deployment in the Permian Basin.

The development builds on earlier groundwork laid through land acquisition, permitting, and power strategy planning, positioning TCDC as a next-generation campus designed for AI and high-performance computing (HPC) workloads.

Additionally, with demand for AI infrastructure surging globally, the project reflects a broader shift toward co-locating compute with reliable, scalable energy sources particularly in regions like West Texas with abundant power generation capacity. This is also mirrored by projects such as Soluna’s Kati data center in Willacy County that is powered by a wind farm. It also signals the rampant development of AI data centers across the United States such as the proposed Amazon data center campus that will be located next to a nuclear plant in Calvert County, Maryland. 

Why is Texas Critical Data Centers (TCDC) Campus Campus in West Texas Important?

The TCDC campus represents a cornerstone of New Era Energy’s vertically integrated strategy that combines energy production, land control, and digital infrastructure into a single development model. By partnering with Stream Data Centers, a Tier-1 U.S. operator backed by Apollo Global Management, the project also gains access to institutional-grade development, leasing, and operational expertise.

The joint venture structure is also particularly notable. New Era contributes land and local relationships, Stream provides development and operational capabilities, and a third-party institutional investor supplies equity and arranges debt financing expected to cover about 80% of project costs. This model enables capital efficiency while allowing New Era to retain a long-term equity stake and recurring revenue exposure.

Strategically, the project is also aligned with the rapid expansion of AI infrastructure globally. Hyperscalers increasingly require “power-ready” campuses capable of delivering hundreds of megawatts quickly, and TCDC’s integrated energy approach, particularly its behind-the-meter power strategy, positions it to meet these requirements with reduced grid dependency and faster deployment timelines.

Texas Critical Data Centers (TCDC) Campus: Project Overview

The Texas Critical Data Centers (TCDC) campus is located in Ector County, near Odessa in the Permian Basin – one of the most energy-rich regions in North America. The site spans approximately 438 acres, with an additional 54-acre corridor under consideration, and is adjacent to major generation assets operated by Vistra Corp. and Calpine Corporation.

The campus is designed as a phased, gigawatt-scale development:

• Phase 1: 200 MW of utility-powered capacity
• Phase 2: 450 MW of on-site gas-fired generation
• Phase 3: Expansion to more than 1 GW total capacity

This phased approach is also an important aspect of TCDC campus in that it allows early commercialization while scaling to meet long-term hyperscale demand.

Engineering, permitting, and site preparation activities are already underway. Construction of initial infrastructure is expected to begin around 2026, with further expansion continuing into 2027.

Texas Critical Data Centers (TCDC): Project Fact Sheet

Location: Ector County, Texas, USA

Site size: 438 acres; additional 54-acre expansion in consideration

Total capacity: More than 1 GW

Phase 1: 200 MW

Phase 2: 450 MW

Primary use: AI & high-performance computing data center campus

Power strategy: Hybrid grid and behind-the-meter generation

Delivery timeline: Initial construction expected from 2026

Development structure: Joint venture between New Era, Stream, and an unnamed institutional investor

Who is Behind the Development of TCDC Campus?

Developers

• New Era Energy & Digital
• Stream Data Centers

Advisors

• OG Advisory Group

Outlook on New Era Energy and Stream Data Centers’ Development in West Texas

TCDC is emerging as a example of how data center development is evolving in the AI era toward energy-integrated, hyperscale-ready campuses capable of delivering gigawatt-scale capacity. Its location in the Permian Basin also offers a unique competitive advantage. This is in the sense that, TCDC campus is close to abundant West Texas energy resources combined with favorable permitting conditions and land availability.

As hyperscalers race to deploy AI infrastructure globally, projects like TCDC could become templates for future developments, particularly in energy-rich regions where speed-to-power is critical. When construction is complete, the campus could anchor West Texas as a major U.S. data center hub, complementing established markets such as Northern Virginia and Dallas.

What to Look Out for Ahead of Construction Start this Year

Despite its strong positioning, the project still faces several key risks. First, the non-binding nature of the current agreement means execution depends on reaching definitive agreements and securing full financing. Second, large-scale data center developments are highly sensitive to power infrastructure timelines, supply chain constraints, and construction costs. These have substantial ability to affect TCDC campus’ development timeline.

Additionally, while the behind-the-meter power strategy offers resilience, it also introduces regulatory and environmental considerations, particularly around gas-fired generation. Finally, market competition remains intense, with multiple developers racing to deliver AI-ready capacity across the U.S.