New Era Energy & Digital (NASDAQ:NUAI) said it advanced permitting, land acquisition and power planning during the second quarter as it works to develop its Texas Critical Data Centers, or TCDC, campus near Odessa, Texas.
Chairman and Chief Executive Officer Charlie Nelson said the company concentrated during the quarter on development items within its control, including permitting, land and site work. The company has received construction permits and expects to begin erosion control and site grading in the coming weeks, he said.
Power capacity expands across first two phases
The company outlined a phased plan to scale the TCDC campus toward 1.4 gigawatts over time. Chief Operating Officer José Rodriguez said phase one is designed for 207 megawatts of capacity sourced from existing generation adjacent to the campus through an islanded, behind-the-meter gas arrangement.
Rodriguez said phase one does not require an ERCOT interconnection or an air permit because no generation will be located on site. New Era is finalizing a power purchase agreement, or PPA, in its own name for the first phase. Nelson said the PPA is substantially in final form, while management noted that final approvals remain outstanding.
Phase two is now planned for approximately 550 megawatts, up from a prior expectation of 450 megawatts. Rodriguez attributed the increase to different generation equipment and more effective emissions controls, which he said would allow greater capacity under the same emissions ceiling.
A subsidiary of New Era’s partner, Thunderhead Energy Solutions, filed standard air permit applications with the Texas Commission on Environmental Quality for the phase two generation. Turbines have been ordered through TURBINE-X, Rodriguez said. Together, phases one and two are expected to provide about 757 megawatts of gross capacity, compared with roughly 650 megawatts previously contemplated.
Pierce said the company expects the standard air-permit application to receive an expedited review, which he said has historically taken one to two months, versus an approximately 18-month process for a major-source review. The company is also awaiting a final surface waiver from one leasehold operator. Management said it has received verbal sign-off and expects the remaining signature relatively soon.
Texas policy backdrop and community engagement
Management discussed Texas Gov. Greg Abbott’s recent directive seeking greater oversight and transparency around data center development, including power, water, infrastructure costs, ownership and community impacts.
Nelson said TCDC’s first two phases are designed as islanded and behind-the-meter projects and are not dependent on ERCOT’s Batch Zero process. He said the project’s dedicated-generation strategy is intended to avoid competing for constrained grid capacity.
The company said its cooling design prioritizes closed-loop liquid cooling and reclaimed water. It is also evaluating independent and wastewater solutions intended to keep produced water in productive use in the Permian Basin.
Pierce said the company has not encountered organized opposition to the project, but has received questions from local stakeholders about the development. He said New Era has engaged directly with local officials, business owners and community groups and expects the project to create construction and operating jobs, training opportunities and local tax-base contributions. The company also cited commitments to library programs in Odessa and after-school childcare funding for working families.
Commercialization and funding plans
President and Chief Financial Officer Ted Warner said New Era is pursuing four parallel work streams: finalizing the phase one PPA, progressing permits, completing definitive documentation for its joint venture with Stream, and advancing leasing discussions with potential end tenants.
Nelson said the company continues to work with its original prospective investment-grade hyperscale tenant while also receiving interest from other major potential tenants. Warner said management continues to have constructive engagement with potential tenants, but did not identify them or provide a timeline for lease execution.
Management said it is still targeting a fourth-quarter 2027 timeframe for initial phase one availability, assuming project participants continue progressing toward that objective. Rodriguez said the company is considering both conventional stick-built construction and modular data center options to accelerate readiness for service.
As of June 30, New Era reported $84.8 million in cash equivalents and restricted cash. Warner said the balance increased from the prior reported level despite operating burn and TCDC capital expenditures, primarily because of the exercise of cash-pay warrants with a $2 strike price during the second quarter.
- New Era has an up-to-$290 million Macquarie project facility with a three-year maturity.
- $20 million under Term Loan A1 has been drawn.
- $30 million under Term Loan A2 is available before leasing at Macquarie’s discretion.
- A $40 million Term Loan A3 tranche and a $200 million delayed-draw tranche are subject to conditions, including a final lease.
- The company said $270 million remained undrawn under the facility as of the call.
Warner said the company’s parent-level liquidity and the Macquarie facility more than cover its expected phase one equity contribution. Larger project capital is expected to be raised at the asset level after lease execution, with New Era targeting roughly 80% debt financing at the joint-venture level.
Management said its immediate priority remains TCDC execution, though it sees longer-term opportunities in smaller inference-focused facilities and additional large greenfield campuses. Warner said the company would consider opportunities beyond TCDC only if they required an immaterial amount of near-term cash and could generate net operating income sooner than the Texas project.
About New Era Energy & Digital (NASDAQ:NUAI)
New Era Energy & Digital, Inc, operates as an exploration and production platform, engages in the exploration, development, and production of helium, oil and natural gas, and natural gas liquids in the United States. The company owns and operates a portfolio of approximately 137,000 acres in Southeast New Mexico. Its flagship Pecos Slope Field covering an area of 1893 square kilometers located 20 miles north of Roswell, New Mexico. It serves Tier 2 gas companies and balloon gas distributors. The company was formerly known as New Era Helium, Inc and changed its name to New Era Energy & Digital, Inc in August 2025.
