Roth CH Acquisition V Co. (NASDAQ: ROCL, ROCLU, ROCLW) announced today that Sharon AI, Inc., a leader in High-Performance Computing (HPC), and New Era Helium Corp. (NEH), a producer of helium and natural gas, have signed a non-binding letter of intent to form a 50/50 joint venture. The venture will focus on designing, developing, and operating an initial 90MW net-zero energy data center in the Permian Basin. Both companies are currently negotiating the terms of a definitive agreement, although there is no guarantee the deal will proceed as planned.
The joint venture aims to jointly design and build the 90MW gas-fired power plant and a Tier 3 data center. The facility will be powered by natural gas, with an expected CO2 capture of 250,000 metric tons to qualify for 45Q tax credits related to carbon capture and storage (CCUS). The power plant and data center will be located on New Era Helium’s Pecos Slope Field, which spans 137,000 acres and currently produces helium and natural gas liquids. As part of the agreement, NEH will supply gas to the joint venture under a fixed-rate agreement for five years, with three renewal options.
Sharon AI will provide the high-performance computing infrastructure, leveraging its partnerships with Nvidia and Lenovo to design and operate the data center. The Tier 3 facility will utilize liquid cooling technology and be optimized for AI and HPC workloads. New Era Helium will handle the energy infrastructure, including the design and construction of the power plant and CO2 carbon capture facilities.
The initial 90MW power plant may expand over time, with opportunities for growth through partnerships with hyperscalers and other large energy consumers.
Roth CH Acquisition V is in the process of completing a business combination with New Era Helium, expected to result in NEH becoming a publicly listed company on Nasdaq. A shareholder vote on the deal is scheduled for November 26, 2024.
Sharon AI CEO, Wolf Schubert, expressed excitement about the partnership, stating, “We’re thrilled to work with New Era Helium, who bring critical energy infrastructure experience to this joint venture.”
New Era Helium CEO, E. Will Gray II, highlighted the strategic importance of the partnership, emphasizing the potential for integrating natural gas into multiple revenue streams, while supporting the growing AI and cloud computing sectors.
John Lipman, Co-CEO of Roth CH, added, “This joint venture is a promising new revenue stream for New Era Helium, combining its natural gas reserves with Sharon AI’s expertise to provide reliable power for the expanding AI data center market.”
