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1606 Corp. (OTC: CBDW) announced it has signed a term sheet to acquire a 55-megawatt Texas power generation facility and a 50,000-square-foot climate-controlled, data center-ready site for approximately $11.7 million. The proposed acquisition includes 132 acres of land and is structured as a behind-the-meter captive power asset designed to support artificial intelligence (AI), high-density computing, and data center operations.
The transaction consists of $7.5 million in cash and the assumption of roughly $4.17 million in existing plant debt. Closing is expected on or before March 11, 2026, subject to definitive agreements and customary conditions.
The facility is expected to serve as a foundational asset in 1606 Corp.’s strategy to build scalable AI-focused energy infrastructure, targeting hyperscale and colocation data center operators seeking reliable, on-site power solutions.
The Company is also negotiating the acquisition of Sim Agro Inc., whose international power-generation expertise would oversee plant operations and support long-term infrastructure development.
With AI workloads projected to more than double global data center electricity demand by 2030, captive power solutions are increasingly viewed as essential to ensuring energy reliability and scalability.