New Era Helium, Inc. (“New Era Helium” or the “Company”), a leading exploration and production (E&P) company specializing in sourcing helium from natural gas reserves in the Permian Basin, has provided a comprehensive strategic update on its evolving role within the artificial intelligence (AI) economy. The Company’s two primary commodities—helium and natural gas—are becoming increasingly critical as AI infrastructure expands. With AI-driven industries demanding advanced semiconductor technology and high-performance computing power, the Company is strategically positioning itself to support these growing needs.
The Company remains on track to meet essential production milestones while evaluating an integrated energy strategy that will enable it to further solidify its position within the AI spectrum. By leveraging its helium and natural gas resources, New Era Helium aims to optimize value creation and establish itself as a cornerstone supplier to critical AI-related industries.
Helium: A Critical Component in AI and Advanced Computing
Helium is an essential element in various high-tech applications, particularly in the AI sector. As AI infrastructure and advanced computing capabilities expand at an unprecedented rate, the demand for helium has skyrocketed. Helium plays a fundamental role in the development and operations of semiconductor manufacturing, GPU cooling, and quantum computing.
Currently, the largest end-use application for helium is in semiconductor chip fabrication, which is a crucial component of AI hardware. Due to its unique properties—such as its inert nature and ability to function as a coolant—helium is indispensable in chip manufacturing processes. However, helium is a scarce resource, and global production is limited to a handful of countries, making it a critical raw material. Recognizing its strategic importance, the United States, the European Union, Canada, and several other jurisdictions have classified helium as a critical material.
With the enactment of the CHIPS and Science Act of 2022, the U.S. semiconductor industry is actively working to reduce dependence on foreign sources by reshoring chip production along with its supply chain. This move aims to create a more resilient and secure semiconductor ecosystem within the U.S. market.
For example, former President Donald Trump recently announced a $100 billion investment by Taiwan Semiconductor Manufacturing Company (TSMC) to build new chip manufacturing plants in Arizona. These new facilities will rely on helium for production, further reinforcing its importance in the semiconductor supply chain. As demand for AI-powered hardware continues to increase, the need for helium in semiconductor fabrication and other advanced computing applications is expected to grow exponentially.
New Era Helium’s extensive reserves position the Company as a vital supplier within this expanding market. By ensuring a stable and sustainable supply of helium, the Company is poised to play a crucial role in supporting the growth of AI and next-generation computing technologies.
Natural Gas: Powering the AI Economy
In addition to helium, New Era Helium’s substantial natural gas reserves provide a long-term energy solution for AI infrastructure. AI data centers require immense amounts of electricity to operate efficiently, and power consumption in this sector is rising rapidly.
A single large-scale data center can consume as much electricity as 50,000 homes. This massive energy demand is straining power grids worldwide, making the availability of reliable and scalable energy sources increasingly critical. New Era Helium is strategically positioned to address this challenge by utilizing its natural gas resources to generate electricity for AI workloads.
Rather than selling natural gas as a commodity through traditional pipeline distribution, the Company intends to convert its gas into electricity, maximizing revenue potential while ensuring a dedicated power supply for AI-driven applications.
The Company’s Pecos Slope Gas Field, a significant natural gas asset, is projected to generate approximately 70+ MW of power for at least 20 years once production reaches its target of 20,000 Mcfpd. This energy capacity is equivalent to supplying electricity to an estimated 40,000 to 80,000 homes for decades. However, recognizing the long-term economic and technological advantages of behind-the-meter energy solutions, the Company has chosen to allocate this power to AI data center operations.
Expansion into AI Data Centers
As part of its broader AI strategy, New Era Helium has taken significant steps to integrate its energy resources directly into AI data center operations. The Company’s joint venture vehicle, Texas Critical Data Centers, LLC (TCDC), recently signed a non-binding Letter of Intent (LOI) to acquire 200 acres in Ector County, Texas. The purpose of this acquisition is to develop a 250MW net-zero AI and high-performance computing (HPC) data center campus.
The emphasis on AI and HPC infrastructure aligns with the Company’s strategic vision of becoming a key energy provider to AI-driven industries. By participating in TCDC, New Era Helium is not only expanding its operational footprint but also ensuring that its energy production capabilities directly contribute to AI and next-generation computing needs.
While the Company has been actively engaged in its partnership with TCDC, it remains committed to the development of the Pecos Slope Field. This natural gas asset remains integral to the Company’s AI strategy, serving as a foundational energy source that will enable sustainable AI growth.
Future Outlook and Strategic Developments
New Era Helium is preparing to issue a formal update regarding the status of its Pecos Slope processing plant. Once operational, this facility will provide pipeline-spec natural gas, helium, and natural gas liquids, further enhancing the Company’s ability to meet growing industry demands.
In addition to the Pecos Slope Field, the Company is focused on several key strategic objectives, including:
- Increasing helium and natural gas production capacity to meet the rising demand from AI and semiconductor industries.
- Expanding its energy infrastructure to support AI-driven computing applications.
- Exploring additional acquisition opportunities to enhance its resource base and production capabilities.
CEO E. Will Gray II emphasized the Company’s commitment to innovation and strategic growth, stating:
“We are at a pivotal moment in New Era Helium’s growth, where our vision for next-generation energy solutions is becoming a reality. Instead of simply selling our natural gas into the pipeline, we are planning on maximizing its value by creating behind-the-meter power to fuel the AI-driven economy. At the same time, we remain focused on key production milestones, reinforcing our commitment to sustainable growth, operational excellence, and long-term value creation.”
Gray further highlighted the importance of helium and natural gas in AI infrastructure, stating:
“We seek to optimize this strategy through our efforts within our Pecos Slope footprint as well as through accretive acquisition opportunities. Since 95% of the world’s helium is associated with natural gas, New Era Helium is strategically positioned to support the growing computing and processing demands of AI.”
