Description

United States

Business ID: L#20261216

The project represents a large-scale powered-land acquisition opportunity in the Permian Basin, West Texas, comprising a portfolio of seven secured development sites with the potential to support up to 7 GW of behind-the-meter (BTM) power generation.

The platform combines titled and optioned land, access to substantial natural gas supply, and a site-specific Power Purchase Agreement (PPA) issued by CLS Sustainable, acting as an independent power producer (IPP).

The development strategy is designed to serve the rapidly growing demand for hyperscale data centers, artificial intelligence (AI) infrastructure and other energy-intensive applications, offering a phased route to multi-gigawatt power delivery without relying on ERCOT grid interconnection as the primary source of initial power.

Buyers may select two or three of the seven available sites to assemble the full 7 GW development platform, with the remaining sites potentially available for other development opportunities.

KEY INVESTMENT HIGHLIGHTS

• Total Power Platform: Up to 7 GW of proposed behind-the-meter generation capacity.
• Portfolio: Seven secured development sites across the Waha hub region.
• Land Area: Approximately 9,750 acres across the seven sites.
• Additional Land: Approximately 10,000 acres optioned for future infrastructure and expansion.
• Power Purchase Agreement: Site-specific PPA issued by CLS Sustainable.
• Indicative Power Price: USD 0.10/kWh (USD 100/MWh), plus a 3% annual escalator on the conversion component.
• Natural Gas Supply: Approximately 20 GW of gas supply availability reported across multiple suppliers.
• Initial Power Delivery: 150 MW targeted for Q2 2027.
• Development Schedule: Targeting 1 GW in 2027, 4 GW cumulative by 2028 and 7 GW by 2029.
• Infrastructure: Existing regional gas and fiber corridors, with water, permitting and substation information available in individual site data rooms.

SITE PORTFOLIO & DEVELOPMENT POTENTIAL

The Project Waha platform comprises seven development locations in the Permian Basin, offering flexibility in site selection and phased campus deployment.

Archer 2 – Quintessa is identified as the reference site for the initial 1 GW development model, with the same development framework intended to be replicated across the selected locations.

The development can be implemented sequentially or simultaneously across multiple sites, providing flexibility in construction, power delivery and environmental permitting.

POWER & COMMERCIAL STRUCTURE

The platform is supported by a proposed behind-the-meter generation strategy under a Power Purchase Agreement issued by CLS Sustainable, acting as an independent power producer.

Key Commercial Terms:

The commercial structure separates the fixed power conversion component from fuel, tariff and tax expenses. The buyer is therefore exposed to the agreed conversion price and annual escalator, while commodity and applicable regulatory costs remain pass-through items.

The initial power strategy is based on on-site generation, with potential Oncor grid service serving as a supplementary bridge or redundancy option rather than the primary determinant of initial power delivery.

NATURAL GAS & GENERATION INFRASTRUCTURE

The project benefits from its strategic position at the Waha natural gas hub in the Permian Basin, with approximately 20 GW of gas supply availability reported across multiple suppliers.

Gas supply term sheets are reportedly in hand, with the following infrastructure development parameters:

• Initial 150 MW Supply: Targeted to be available in less than six months.
• Gas Interconnection: Approximately USD 25 million in estimated development costs.
• Development Timeline: Approximately 6–9 months for gigawatt-capable interconnection, metering, regulation and lateral infrastructure.
• Midstream Partner: Revolution Midstream is the contemplated counterpart for building, owning, operating, transporting and metering the gas lateral.

The long-term energy strategy is based on scalable on-site generation, supported by the natural gas infrastructure and the proposed PPA structure.

PERMITTING & DEVELOPMENT SCHEDULE

Air permitting is expected to follow a phased strategy aligned with generation capacity.

• Initial Phase: TCEQ standard-permit pathway indicated for projects at or below approximately 300 MW, with a 45–60-day feasibility period.
• Full 1 GW Development: Title V / Prevention of Significant Deterioration (PSD) permitting, with an estimated 9–15-month process involving emissions modeling and public notice.

Indicative Power Development Timeline

The schedule represents the project’s stated development targets and remains subject to generation equipment procurement, gas infrastructure, permitting, construction and commissioning.

FIRST-PHASE DEVELOPMENT COSTS

Estimated owner-controllable development costs total approximately USD 117.5 million, excluding generation equipment.

Generation equipment costs are excluded from the above development budget.

INFRASTRUCTURE & UTILITIES

Power: Behind-the-meter generation platform targeting up to 7 GW under the proposed IPP / PPA structure, supported by reported natural gas availability.

Natural Gas: Access to approximately 20 GW of gas supply across multiple suppliers, with site-specific supply arrangements and gas lateral infrastructure under development.

Fiber Connectivity: Multiple regional and long-haul fiber routes identified across the portfolio, with route studies available in the respective site data rooms.

Water: Water availability documented on a site-specific basis, with identified infrastructure and development requirements.

Permitting & Substations: Site-specific documentation covering air permits, existing substation context and potential future grid interconnection options.

Expansion Infrastructure: Approximately 10,000 additional acres optioned to accommodate future gas laterals, water infrastructure, fiber connectivity and potential grid interconnection.