New Era Energy & Digital Secures Up to 207 MW PPA for Texas Critical Data Centers Phase 1

New Era Energy & Digital, Inc. (Nasdaq: NUAI), a developer of next-generation digital infrastructure and integrated power assets, has taken a significant step toward delivering large-scale data center capacity in the Permian Basin, announcing a 20-year power purchase agreement and continued progress on leasing at its flagship Texas Critical Data Centers project. The move underscores the growing urgency among digital infrastructure developers to lock in firm power supplies well ahead of construction completion, as hyperscale and enterprise demand for AI-ready capacity continues to outstrip available energized sites across the United States.

The company executed a 20-year PPA with Luminant, ET Services Company, LLC, an affiliate of Vistra Corp, covering a minimum of 200 MW and up to 207 MW of firm power for TCDC Phase 1. Power availability is expected in the third quarter of 2027, with initial ready-for-service targeted for the fourth quarter of 2027. New Era said it is in advanced negotiations on Phase 1 lease documentation under a non-binding letter of intent covering Phases 1 and 2 with the same prospective tenant. Site preparation is already underway, and the company has placed an additional 99 acres under contract alongside the 493 acres it owns.

Chairman and Chief Executive Officer Charlie Nelson framed the quarter's progress around execution and responsible development. "Since our last quarterly update, we have contracted up to 207 MW of TCDC Phase 1 power, posted the required cash collateral and strengthened our balance sheet," he said. "With power availability expected in the third quarter of 2027, our focus is on our advanced negotiations for the Phase 1 lease and putting the financing and delivery arrangements in place." Nelson also emphasized that the company's approach is designed to avoid additional transmission costs for ratepayers, use water responsibly and give local communities a voice, adding that New Era wants "Texans to have a seat at the table and local residents and businesses to share in the opportunities TCDC creates."

On the power and regulatory front, Phase 1 relies on an existing registered, behind-the-meter private use network outside the Electric Reliability Council of Texas' Batch Zero process, while Phase 2 plans call for new on-site generation to serve additional demand directly. New Era said these arrangements are structured to avoid passing additional transmission costs on to other Texas ratepayers. The company is also prioritizing closed-loop cooling to limit water consumption and is evaluating the reuse of water produced by Permian Basin oil and gas operations for cooling, which could reduce freshwater demand and volumes sent to disposal wells. Community engagement efforts are continuing with local officials, businesses and organizations in Odessa and Ector County.

New Era bolstered its balance sheet during the quarter, completing a $64 million PIPE to repay Macquarie borrowings used to fund a portion of the Phase 1 PPA cash collateral and to support TCDC leasing and development. As of October 31, 2026, total cash stood at $187 million, comprising $49 million of unrestricted cash and $138 million of restricted cash, including collateral supporting the PPA letter of credit. Outstanding debt was $20 million and was cash collateralized. The company retained an option for up to $200 million of post-lease financing under the Macquarie facility, subject to applicable financing conditions. Looking further ahead, Phase 2 plans include approximately 550 MW of new behind-the-meter generation with Thunderhead Energy Solutions, with an air permit application already filed, while Phase 3 remains in design. The flagship TCDC site is anticipated to scale to more than 1 GW of capacity over time, positioning New Era among a growing cohort of developers betting that flexible, behind-the-meter power solutions will be decisive in accelerating time-to-power for AI training and inference workloads.