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Shares of 1606 Corp. (OTC: CBDW) are drawing increased attention following remarks by President Donald Trump during his State of the Union address stating that major technology companies developing artificial intelligence will be required to generate their own electricity rather than relying solely on local power grids.
“Many Americans are concerned that energy demand from AI data centers could unfairly drive up their electric utility bills,” Trump said. “We’re telling the major tech companies that they have the obligation to provide for their own power needs. They can build their own power plants as part of their factory.”
Trump described the policy as a “ratepayer protection pledge,” emphasizing that self-generated power would prevent electricity costs from rising for American households and could potentially reduce local rates.
The comments come at a pivotal time for 1606 Corp. (OTC: CBDW), which recently entered into a nonbinding agreement to purchase approximately 132 acres in North Lufkin, Texas, including a 55-megawatt power generation facility and a climate-controlled building described as “data-center ready.” The acquisition aligns directly with the administration’s stated push for behind-the-meter, captive power generation to support artificial intelligence infrastructure.
AI Energy Policy Meets Private Power Infrastructure
The federal push for self-generated power could significantly accelerate investment in on-site generation, microgrids, and captive energy systems for hyperscale data centers. As AI workloads expand rapidly, electricity demand from high-density computing is projected to more than double globally by 2030.
Trump’s remarks suggest that future AI facilities may need to integrate power plants directly into their campus designs, effectively combining energy infrastructure with digital infrastructure.
1606 Corp.’s proposed Texas site mirrors that model. The property includes an existing 55 MW generation asset capable of supporting large-scale computing loads and provides room for expansion. The presence of a climate-controlled building already configured for industrial use further enhances its positioning as a ready-made AI infrastructure location.
Angelina County Emerging as AI Power Hub
Two major AI-related developments are under discussion in Angelina County:
- A proposed Amp Z gigawatt-scale data center campus, potentially spanning more than 1,000 acres and scaling toward 2.1 gigawatts of combined utility and on-site power.
- The separate 1606 Corp. project involving the former Aspen Power plant site in North Lufkin.
County officials have indicated projected demand in the region could increase from “tens of megawatts to hundreds of megawatts” as phases come online. Discussions with Oncor Electric Delivery and new generation projects such as Long Leaf Generating LLC’s planned gas-fired peaking plant underscore the region’s growing energy infrastructure footprint.
While current substations are not sized for hyperscale AI loads, ongoing generation expansion suggests local capacity is being built to accommodate next-generation computing projects.
Strategic Implications for CBDW
If federal policy formally requires AI operators to self-generate power, companies with existing or developing behind-the-meter energy assets could benefit from accelerated demand.
1606 Corp.’s strategy centers on:
- Infrastructure ownership
- Captive generation solutions
- Scalable power for AI and data centers
- Integration of energy and computing assets
The company’s negotiations to acquire Sim Agro Inc., an international power plant operator, further strengthen its operational capability to manage high-efficiency generation assets.
Looking Ahead
As AI continues reshaping global industries, energy availability is emerging as one of the most critical constraints. Trump’s call for AI developers to build their own power plants signals a potential structural shift in how hyperscale infrastructure is financed and deployed in the United States.
For 1606 Corp. (OTC: CBDW), the timing may be significant. With a 55 MW Texas generation facility under agreement and data-center-ready infrastructure in place, the company appears aligned with the evolving national policy direction linking artificial intelligence growth directly to self-sufficient power generation.
Investors will be watching closely as federal energy policy, AI expansion, and infrastructure development converge in the months ahead.