Key insights
- New Era Energy & Digital (NUAI) signed a letter of intent for a joint venture to develop a data center campus in Texas with Stream Data Centers and an institutional investor. The project, financed with 80% debt, aims for over 1 gigawatt of capacity. While positive for NUAI, the broader market impact is limited, potentially signaling continued investment in digital infrastructure.
MIDLAND, Texas - New Era Energy & Digital, Inc. (NASDAQ:NUAI) announced today it has entered into a non-binding letter of intent to form a joint venture for the development of its Texas Critical Data Centers campus in West Texas.
The joint venture will include Stream Data Centers, a data center development and operating platform, with equity capital from an institutional investor. New Era will contribute site control and local relationships, the institutional investor will provide equity capital and arrange debt financing, and Stream will serve as development manager and operator.
The project financing is expected to include approximately 80% debt financing. New Era plans to co-invest equity capital alongside the institutional investor and maintain a long-term stake in the venture. The company’s equity position is expected to generate distributions from operating cash flow after the first phase begins commercial operations.
The Texas Critical Data Centers campus is located on 438 acres in Ector County, Texas, adjacent to generation assets operated by Vistra and Calpine. The campus is designed for phased expansion toward more than 1 gigawatt of total capacity across three phases.
Phase 1 is planned for approximately 200 megawatts of utility-powered capacity, Phase 2 for approximately 450 megawatts of on-site gas-fired generation capacity, and Phase 3 would scale the campus to over 1 gigawatt of total capacity.
"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 (NYSE:APO), a prominent player in the financial services industry with a market capitalization of $64.4 billion. Apollo’s stock has declined 22.72% year-to-date and trades at $111.42, though InvestingPro analysis suggests the company is undervalued relative to its Fair Value—placing it among opportunities on the most undervalued stocks list. Despite recent volatility, Apollo has delivered strong returns over the last five years and maintains a P/E ratio of 19.86. Stream operates data center facilities across major U.S. markets including Dallas, Phoenix, Chicago, San Antonio, and Atlanta.
The information is based on a press release statement from New Era Energy & Digital.
In other recent news, Apollo Global Management is nearing a significant acquisition deal valued at nearly $10 billion for Atlantic Aviation, partnering with Singaporean sovereign wealth fund GIC Pte. This transaction involves acquiring a majority stake from KKR & Co., which will still retain a substantial ownership position. Additionally, Apollo Global Management has priced a $750 million senior notes offering with a 5.700% interest rate due in 2036, expected to close soon pending customary conditions.
Raymond James has reiterated a Strong Buy rating on Apollo Global Management, citing the company’s robust growth profile and operational advantages. UBS also maintained a Buy rating, highlighting stable net flows compared to peers. Piper Sandler reiterated an Overweight rating, focusing on developments in Apollo’s non-traded business development company, noting significant redemption requests in the first quarter of 2026. These recent developments underscore Apollo Global Management’s active engagement in expanding its investment portfolio and maintaining investor confidence.
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