New Era Energy & Digital Inc. (NASDAQ: NUAI) announced it has entered into a non-binding letter of intent to form a joint venture with Stream Data Centers for the development of its Texas Critical Data Centers campus in West Texas.

The joint venture structure involves New Era contributing site control and local relationships, while Stream provides development and operating capabilities. A third-party institutional investor will provide equity capital and arrange debt financing, which is expected to include approximately 80% debt financing.

Stream will serve as development manager and operator for the campus. New Era plans to co-invest equity capital alongside the institutional investor and maintain a long-term stake in the venture rather than simply selling land.

The TCDC campus sits on 438 acres in Ector County, Texas, with an additional 54-acre corridor pending. The project is designed for phased expansion toward more than 1 gigawatt of total capacity across three phases. Phase 1 will include approximately 200 megawatts of utility-powered capacity, Phase 2 will add roughly 450 megawatts of on-site gas-fired generation capacity, and Phase 3 will scale the campus to over 1 gigawatt.

The campus is located adjacent to generation assets operated by Vistra and Calpine in the Permian Basin and is positioned to support large-scale artificial intelligence and high-performance computing workloads.

"This LOI represents an important step in advancing TCDC toward delivery, and we remain focused on progressing toward a definitive agreement with Stream," said E. Will Gray II, chief executive officer of New Era.

Stream Data Centers is backed by Apollo Global Management (NYSE: APO) and operates data center facilities across major U.S. markets including Dallas, Phoenix, Chicago, San Antonio and Atlanta.