Plug Power Sells Texas Hydrogen Site to Stream Data Centers in $76.5 Million Deal

Hydrogen fuel cell company Plug Power has agreed to sell a 66-acre site in Graham, Texas, along with its associated 164 megawatts of grid interconnection assets, to data center developer Stream Data Centers for up to $76.5 million. The deal marks a significant shift in strategy for the Nasdaq-listed company, which had originally earmarked the land for its largest green hydrogen production plant, known as the Limestone project. The transaction is expected to close by the end of July 2026.

Under the terms of the definitive agreement, Plug will receive approximately $50 million at closing, with an additional potential payment of up to $26.5 million contingent on the final interconnection capacity confirmed by the local Texas utility. The site, located west of Graham, was originally slated to begin construction in 2025 but was officially abandoned earlier this year as part of a broader corporate restructuring. The sale is also expected to release roughly $14 million in cash collateral currently tied to letters of credit and security payments, bringing the total liquidity generated from the transaction to approximately $90.5 million.

Stream, a data center operator founded in 1999 with a footprint spanning Texas, Illinois, Minnesota, and several other states, has not publicly disclosed its plans for the Texas property, which sits about 87 miles west of Fort Worth. The company was recently acquired by Apollo Global Management from Stream Realty Partners. Separately, Plug and Stream have amended a previous agreement concerning the New York Gateway Project in Genesee County. Under the revised terms, Stream will release a $6.5 million escrow deposit to Plug and make a new $10 million escrow deposit toward the land purchase. The closing timeline for non-land assets has been extended to March 31, 2027, to accommodate ongoing environmental and regulatory reviews in New York state. Plug will retain ownership of the substation and interconnection assets, along with a repurchase right over the land, until the second closing.

The New York site, located within the STAMP industrial park, was originally intended for a hydrogen plant but was sold to Stream in March. Stream is now planning to develop a campus called Project Double Reed on the site, which could total up to 500 megawatts across two two-story buildings. However, the impact of a newly introduced statewide data center moratorium in New York on this project remains unclear. Combined, Plug said these transactions represent “additional progress” under its strategic infrastructure optimization initiative and are expected to deliver more than $80 million in near-term incremental liquidity amid ongoing financial losses.

“Plug is appreciative of the continued collaboration and partnership with Stream Data Centers and is excited to position for closing in the near term. Monetizing these assets was a key part of our strategy this year, coupled with the continued improvements in margin and cash flows to fund the business,” said Jose Luis Crespo, CEO of Plug Power. “We look forward to sharing our results for the second quarter shortly and believe that we are on track with our financial goals for 2026. The improvement in margins, effective management of our liquidity, and the growth of our sales pipeline remain our critical focus.” Both companies also confirmed they are “actively exploring” additional opportunities for Plug to deploy its hydrogen fuel cell products into the data center industry.