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MIDLAND, Texas - New Era Helium, Inc. (NASDAQ:NEHC), a micro-cap company with a market value of $7.12 million, announced Tuesday that its joint venture, Texas Critical Data Centers LLC (TCDC), has signed a non-binding Letter of Intent with a global provider of high-performance cloud services for AI workloads. According to InvestingPro data, the company faces significant financial challenges with a weak financial health score.
The LOI contemplates the acquisition of land and a power purchase agreement for up to 250 megawatts of behind-the-meter electricity to support advanced data center operations in Ector County, Texas.
TCDC, formed in 2024 as a joint venture between New Era Helium and Sharon AI, is developing an artificial intelligence and high-performance computing campus designed to meet growing demand for AI and cloud GPU infrastructure. The company is currently finalizing due diligence on a 235-acre site, with closing expected on or before July 10, 2025.
"This agreement marks a pivotal step in aligning our energy platform with the surging demand for AI infrastructure," said E. Will Gray II, CEO of New Era Helium, in the press release.
The prospective customer, described as "rapidly scaling its global AI operations," has identified the Ector County location as a potential site to expand its U.S. operations.
New Era Helium controls over 137,000 acres in Southeast New Mexico with more than 1.5 Bcf of proved and probable helium reserves sourced alongside natural gas production. The company is pursuing a strategy that spans helium production, power generation, and data infrastructure through its joint ventures.
Upcoming project milestones are expected to include updates on natural gas supply and advancing grid interconnection planning, according to the company statement.
In other recent news, New Era Helium Inc. has announced several significant developments. The company reported that its joint venture, Texas Critical Data Centers LLC, signed a non-binding Letter of Intent with a major global provider of high-performance cloud services for AI workloads. This venture plans to secure a power purchase agreement for up to 250 megawatts of electricity to support advanced data center operations in the Permian Basin. In addition, New Era Helium has partnered with PowerForward Energy Solutions to provide 250 megawatts of generation capacity for a high-performance computing campus in Ector County, Texas, with initial deployment expected within 12 months.
In governance news, New Era Helium appointed three new board members, including Trent Yang, Peter (P.J.) Lee, and Ondrej Sestak, following recent board member resignations. The company is in discussions with potential large enterprise customers to anchor its planned AI infrastructure development in Ector County, Texas. Furthermore, two board members, Phil Kornbluth and Stan Boroweic, have resigned, with Kornbluth offering to provide consulting services if needed. These board changes are not anticipated to impact the company’s strategic direction.
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