Curated News
By: NewsRamp Editorial Staff
February 17, 2026
1606 Corp. Acquires Texas Power Plant for AI Data Center Expansion
TLDR
- 1606 Corp's $11.7M acquisition of a Texas power facility positions it to capitalize on the booming AI data center market, offering a strategic advantage in captive energy infrastructure.
- The acquisition includes a 55 MW behind-the-meter power plant, 132 acres, and 50,000 sq ft of climate-controlled data center infrastructure, funded through $7.5M cash and $4.17M debt assumption.
- This investment in reliable power infrastructure supports AI development and data center growth, potentially advancing technological innovation while addressing increasing global energy demands for computing.
- The captive power generation market is projected to grow from $227.9B to $310.9B by 2030, with data center power infrastructure expanding at a 13.2% annual rate.
Impact - Why it Matters
This development matters because it addresses one of the most critical challenges in the AI revolution: power infrastructure. As artificial intelligence workloads explode globally, data centers require unprecedented amounts of reliable electricity, often straining traditional power grids. The move toward behind-the-meter captive power generation represents a fundamental shift in how we power the digital economy, offering solutions to grid congestion, connection delays, and energy security concerns. For investors, this signals growing opportunities in the intersection of energy infrastructure and technology, particularly as the captive power generation market is projected to reach $310.9 billion by 2030. For the broader technology ecosystem, reliable power infrastructure is becoming as crucial as computing hardware itself, determining where and how AI innovation can happen. This acquisition reflects how traditional energy assets are being repurposed for the digital age, creating new investment theses around power-as-a-service for data-intensive operations.
Summary
1606 Corp. (OTC: CBDW), a Nevada-based company focused on power infrastructure for artificial intelligence and data centers, has announced a strategic $11.7 million acquisition plan to strengthen its AI-focused energy infrastructure strategy. The company has signed a non-binding term sheet to acquire a 55-megawatt behind-the-meter power generation facility in Texas, along with 132 acres of land and a 50,000 square-foot climate-controlled warehouse configured for data center operations. This proposed transaction, which includes $7.5 million in cash and assumption of $4.17 million in existing debt, represents a significant expansion into captive power infrastructure designed specifically to support AI workloads and high-density computing operations.
The acquisition is part of 1606 Corp.'s broader strategy to develop a scalable portfolio of energy infrastructure assets capable of meeting the accelerating global demand for AI-driven data center power solutions. CEO Austen Lambrecht emphasized that this transaction strengthens the company's long-term cash flow potential and positions it for higher-tier exchange listing standards. The facility is designed to operate as a captive power generation asset, providing reliable, low-latency power delivery for compute-intensive AI operations while addressing growing concerns about grid congestion and connection delays that plague traditional data center power solutions.
Complementing this acquisition, 1606 Corp. is also in negotiations to acquire Sim Agro Inc., a privately held power plant operations company with international expertise in high-efficiency generation projects. Led by President Dr. Karthik Raghavan, Sim Agro has built and operated power plants across multiple continents and is expected to oversee operations of the Texas facility upon closing. This move brings crucial operational expertise to support 1606 Corp.'s infrastructure platform, which focuses on energy reliability for AI workloads, infrastructure ownership, captive generation solutions, and scalable power for hyperscale and colocation operators. The company's leadership team includes technology executives with experience at major firms like Oracle Cloud, AWS, and Microsoft, positioning them well to navigate the intersection of energy infrastructure and digital transformation.
Source Statement
This curated news summary relied on content disributed by PRISM Mediawire. Read the original source here, 1606 Corp. Acquires Texas Power Plant for AI Data Center Expansion
