New Era Energy & Digital (NASDAQ: NUAI) secures co-development deal with Primary Digital for Texas AI data center

New Era Energy & Digital, Inc. (NASDAQ: NUAI) has secured a pivotal development partnership with Primary Digital Infrastructure to co-develop the Texas Critical Data Centers (TCDC), a 1+ gigawatt hyperscale-ready campus in Ector County, Texas. The announcement follows New Era’s recent acquisition of full ownership in the project and caps a 60-day execution sprint that has repositioned TCDC as one of the most strategically aligned AI compute campuses in the country. For New Era, this marks a transition from early-stage land and power aggregation to institutional-grade co-sponsorship, designed to accelerate anchor tenant signing and commercial build-out.

Why is the partnership between New Era and Primary Digital strategically relevant now?

This co-development agreement crystallizes several trends at once: the decentralization of AI data infrastructure away from saturated metros, the convergence of compute and power ownership, and the rise of private capital-backed digital infrastructure platforms ready to absorb hyperscaler demand. For New Era, which has been building a vertically integrated asset base in the Permian Basin, the deal with Primary Digital injects institutional-grade capital strategy and execution capacity into a project that was previously in transition after the exit of Sharon AI.

Primary Digital Infrastructure brings more than just funding. Led by executives with experience delivering multi-gigawatt campuses and AI-aligned data centers—including former leaders of Digital Realty and CyrusOne—the platform offers tenant access and financial structuring depth that significantly de-risks New Era’s execution path. The partners’ aligned incentives, combined with shared co-sponsorship responsibilities, could help avoid the misalignment that has plagued other early-stage data infrastructure partnerships.

The location, too, is no accident. Ector County sits adjacent to one of the largest natural gas hubs in North America, with flexible interconnection and behind-the-meter options that mirror what hyperscalers increasingly want: energy independence, controllable cost bases, and redundancy. With power now considered the limiting reagent in AI infrastructure, this geography offers built-in arbitrage.

What does the ownership consolidation tell us about New Era’s capital discipline and long-game thesis?

In parallel with the Primary Digital announcement, New Era confirmed that it had completed its previously announced acquisition of Sharon AI’s 50% interest in TCDC. Structured as a $70 million transaction—comprised of $10 million in cash, a $10 million fixed-value equity issuance, and a $50 million convertible note—the deal effectively gives New Era full development control over the 438-acre site. Sharon AI, which had co-developed the project through early engineering and permitting phases, now exits fully.

This move signals several things. First, New Era is betting that a clean capital structure will accelerate timelines, eliminate governance friction, and strengthen its position in institutional co-sponsorship and anchor tenant negotiations. Second, it reflects a deliberate pivot from a loosely defined “neocloud” model to a more classic pick-and-shovel strategy: acquire land, secure power, de-risk development, bring in institutional partners, and monetize through long-term leases or take-outs.

Notably, the transaction was structured to limit dilution for existing shareholders—an important signal given NUAI’s microcap status and its need to maintain financial credibility while operating in capital-intensive territory. By deferring equity issuance to March 2026 and relying primarily on secured debt for the remainder, the company has preserved headroom for future rounds while still enabling scale.

How does this project fit into the broader AI data center land rush—and who are the peers to watch?

TCDC’s 1+ gigawatt scale immediately places it in the upper tier of AI-focused data center developments, comparable to Blackstone-backed QScale’s Quebec builds, AWS’s Sierra AI clusters, and the Stargate project—Primary Digital’s own 1.2 GW flagship joint venture with Crusoe Energy Systems and Blue Owl Capital in Abilene, Texas. That campus, now reportedly 77 percent financed, is among the largest purpose-built AI compute hubs in the U.S.

Primary Digital’s ability to syndicate large volumes of capital—over $11.6 billion raised for Stargate alone—will likely shape how the TCDC deal scales. If similar financing contours emerge, New Era could secure a fully funded build path through a mixture of leaseback structures, REIT-aligned equity, or multi-tranche institutional debt. This is particularly relevant as hyperscalers increasingly seek large, ready-to-deploy campuses with flexible ownership and low development risk.

Peers such as EdgeCore, Stack Infrastructure, Aligned Data Centers, and Yondr are all vying for the same class of hyperscale AI tenants. The difference is that New Era’s bet on vertical integration—owning both the power and the land—mirrors the kind of utility-style economics that has historically proven resilient during compute supply cycles. If execution holds, TCDC could become a case study in Permian Basin-powered AI scale-up.

What are the short-term risks and long-term triggers for institutional capital or tenants?

Execution risk remains high, particularly in transitioning from land development to full tenant fit-out and load ramp. While New Era has been vocal about securing an anchor tenant, none has been publicly named. Given Primary Digital’s positioning, the likely candidates include Tier 1 cloud providers or AI model companies looking for dedicated west-central U.S. capacity. But until that anchor is secured, power procurement, interconnection scheduling, and construction sequencing will remain contingent.

Another risk is capital pacing. New Era will need to walk a tightrope between maintaining ownership economics and bringing in sufficient outside capital to support execution. Over-reliance on debt, even if senior-secured, could raise leverage concerns, while premature equity issuance could dampen investor enthusiasm. The recent structure appears to recognize this balance, but market conditions—including rates and tenant capex cycles—will shape how that calculus evolves.

Longer-term, if TCDC lands a top-tier tenant and begins phased commissioning by late 2026, it could reset investor perceptions of NUAI’s capability and position it as a new contender in the institutional digital infrastructure space. It also reinforces the trend of hyperscale projects anchoring themselves in energy-centric geographies rather than legacy urban tech corridors.

What are the strategic implications of New Era’s Texas AI data center pivot for peers and investors?

• New Era Energy & Digital has secured full ownership of the TCDC project and entered a co-development deal with Primary Digital Infrastructure, advancing from land aggregation to institutional execution.

• The 1+ GW hyperscale campus in Ector County, Texas is being engineered with integrated grid and behind-the-meter power, positioning it to serve AI tenants with energy flexibility and cost control.

• The partnership brings deep institutional capital structuring experience and tenant access through Primary Digital, mitigating development risk and enhancing anchor tenant confidence.

• The $70 million buyout of Sharon AI was structured to minimize equity dilution while aligning financial control with execution, showcasing New Era’s capital discipline.

• The campus’ location in the Permian Basin leverages abundant power and favorable economics, reflecting a broader shift in AI data center geography away from coastal metros.

• New Era’s vertical integration strategy mirrors utility-style economics, distinguishing it from lease-only peers and aligning with emerging hyperscaler priorities.

• Execution milestones such as tenant signing and power interconnection will be critical in 2026 to de-risk the project and attract broader institutional capital.

• If successful, TCDC could establish New Era as a viable pick-and-shovel player in the AI infrastructure buildout, with scalable economics and strategic relevance beyond its size.