New Era upsizes Permian Basin data centre plans
New Era Helium, which sources inert helium gas associated with natural gas production, said December 11 it would upsize plans announced in November to develop a gas-powered AI data centre in the Permian Basin with Sharon AI.
Last month, the two signed a non-binding letter of intent (LoI) to develop a 90 MW data centre; now, they have upsized that to 250 MW and converted the non-binding LoI to a binding document. The initial 250 MW gas-fired power plant could be expanded in the future, depending on potential demand from hyperscalers and other large energy users.
The joint venture, in which New Era will develop the energy infrastructure to power the data centre and Sharon AI the technology to build and operate it, reflects increased power demand from potential off-takers and the strategic importance of a data centre in Texas.
“This JV partnership with Sharon AI highlights our commitment to innovative energy solutions and represents a significant step forward, building on the momentum of our successful trading debut on Nasdaq this past Monday,” New Era CEO Will Gray said. “Our public listing reflects New Era Helium’s ability to support today’s high-growth, in-demand industries with environmentally responsible energy solutions.”
New Era’s responsibilities under the JV include providing gas-fired power plant design and construction, CO2 capture and associated pipeline works. It will also enter into a gas supply agreement at a mutually agreed fixed price for five years plus three options of five years each.
New Era is developing a 20mn ft3/day natural gas and helium processing facility at the Pecos Slope Field in New Mexico, the only field in the Permian with commercial reserves of helium. The processing facility, expected to be operational in Q2 2025, will produce 2.7mn ft3/month gaseous helium, or about 32mn ft3/year, along with 477mn ft3/month of methane and 32,545 barrels/month of natural gas liquids.
New Era and Sharon AI anticipate formalising the joint venture agreement on or before December 23, 2024.