Canadian energy company Jericho Energy Ventures has partnered with real estate developer Comstock Holding to form a joint venture focused on the development of AI data center campuses across Oklahoma.

The companies signed a non-binding Letter of Intent that aims to integrate Jericho’s subsurface energy infrastructure with surface real estate to support large-scale AI data center development in Oklahoma.

As part of the agreement, Comstock will invest $1.5 million in Jericho through a non-brokered private placement, subject to regulatory approval from the TSX Venture Exchange.

The financing will consist of 25,684,932 units priced at CAD$0.08 (US$0.059) per unit. Each unit includes one variable voting share and one-half of a warrant, with each full warrant exercisable at CAD$0.20 (US$0.15) for 24 months. Jericho may issue up to an additional 20 million units under the same terms, depending on investor demand.

Net proceeds from the financing will be used to advance Jericho’s planned flagship AI data center campus in Oklahoma and for general working capital.

"We are pleased to welcome Comstock, a leading real estate investor and developer, as a major shareholder and strategic partner of JEV. Their investment validates the quality of our energy assets and our strategy to develop premier AI data center campuses integrated within our robust Oklahoma energy infrastructure. This partnership strengthens our platform and positions the Company well for its next phase of growth," said Brian Williamson, CEO of Jericho.

As part of the agreement, Comstock CEO Chris Clemente is expected to join Jericho’s board. In addition, Comstock is expected to invest a further $6m into the new JV and will retain the ability to participate in future Jericho financings or facilitate indirect capital contributions from the JV to Jericho.

Chris Clemente, CEO of Comstock, commented: "We are excited to collaborate with Brian Williamson and the Jericho team. Comstock and Jericho will be focused on accelerating the planning of a world-class AI data center campus and master plan on land indirectly controlled by Jericho, thereby creating significant value for all stakeholders."

Founded in 2010, Jericho is based in Vancouver, British Columbia, Canada. In addition to its natural gas assets, the firm has invested across the energy landscape, including several subsidiaries. These include Hydrogen Technologies, which is building a zero-emission boiler, and Etna Solutions, a developer of an alkaline-based electrolyzer system.

Last March, the company launched a modular data center business that aims to utilize its natural gas assets as the foundation for developing AI-specific modular data centers.