New Era Energy & Digital has signed a land option purchase agreement for around 3,500 acres in Lea County, New Mexico, with plans to develop an up to 7GW AI data center campus powered by natural gas and nuclear energy.

A land option purchase agreement is a legally binding contract where a buyer pays a fee for the exclusive right, but not the obligation, to purchase a property within a specific timeframe.

If realized, the site is expected to support more than 2GW of natural gas generation alongside a planned 5GW plus nuclear installation. Initial power delivery at the site is targeted for 2028.

According to New Era, the Lea County location was selected due to its proximity to major gas transmission lines, existing power infrastructure, water resources, skilled labor, and high-speed fiber connectivity. Engineering work is set to begin within 30 days, covering site evaluation, master planning, and full engineering design.

E. Will Gray II, CEO of New Era Energy & Digital, said: “Lea County’s deep energy heritage provides a foundation of skilled talent that directly supports our next-generation digital infrastructure vision. We believe this development will not only drive economic growth and high-tech job creation but also leverage New Mexico’s natural resources to power the future of AI innovation.”

The company said gas supply has been confirmed for the natural gas facilities and that it is finalizing the technology selection for the nuclear component. It is unclear whether the company will seek to deploy small modular reactors or traditional nuclear reactors at the site.

Alongside powering its own operations, the company plans to offer powered shell buildings and powered land lease options for AI customers through an integrated development model.

This project will be New Era’s first wholly owned development, separate from its Texas Critical Data Centers (TCDC) joint venture. TCDC is a JV with Sharon AI that is developing an offgrid AI data center in Ector County, Texas.

The data center is expected to have an initial capacity of 250MW, with the potential to scale beyond 1GW. According to the partners, it will integrate advanced energy, cooling, and the potential for carbon capture, utilization, and storage.

Formally known as New Era Helium, the company rebranded as New Era Energy & Digital in August to reflect its new strategic focus on powering the AI data center sector. The company is focused on the exploration and production of helium and natural gas.