GPU cloud provider Sharon AI is set to develop a 90MW natural gas-powered data center in the US.
Sharon AI and New Era Helium Corp., an industrial gas business that produces helium and natural gas, this week announced that they have executed a non-binding letter of intent to form a joint venture for the design, development, and operation of a 90MW data center in the Permian Basin.
Under the terms of the 50/50 joint venture, the parties will jointly design, build, and operate an initial 90MW power plant and Tier III-quality liquid-cooled data center. Timelines for development weren’t shared.
The companies said the JV has identified a suitable site and preliminary specifications for the power plant and data center, leveraging the existing Pecos Slope Field in New Mexico owned and operated by New Era Helium where it currently produces helium, natural gas liquids, and dry natural gas within its 137,000-acreage position.
As part of the JV, New Era Helium will enter into a gas supply agreement with the JV at a mutually agreed fixed cost for five years plus three options of five years each.
The companies are currently negotiating the definitive joint venture agreement – and there are no guarantees the deal will come to fruition.
Founded this year, Sharon AI is a high-performance computing company that focuses on AI cloud GPU compute infrastructure. The company has Nvidia L40S, H100, and AMD MI3000X GPUs at Equinix and NextDC data centers, as well as custom-built Modular Data Centers (MDCs).
The company has previously said it is present in NextDC’s M3 facility in Melbourne, Australia. Sharon AI founder and COO Andrew Leece has said the company has acquired a Tier III quality data center – but didn’t provide details.
Wolf Schubert, CEO of Sharon AI, said: “We are very excited to be building Tier III direct-to-chip liquid cooling data centers in the US with our partners at New Era Helium, who bring considerable energy infrastructure experience to the joint venture. Initial planning and scoping is now complete, and we look forward to moving forward with engineering and offtake discussions.”
New Era Helium will provide the energy infrastructure required to power the project, including gas-fired power plant design and construction, CO2 carbon capture, and associated pipeline works. The 90MW power plant is expected to capture approximately 250,000 metric tons of CO2 in order to qualify for certain tax credits associated with carbon capture, utilization, and storage (CCUS).
E. Will Gray II, CEO of New Era Helium Corp, added: “The Sharon AI partnership marks an integral step in New Era Helium’s advancement of high-grading natural gas production into multiple revenue streams and vertical integration into energy infrastructure.
"Given the growth in cloud computing and AI, uninterruptible power remains a critical asset, and power, much like helium, remains a critical puzzle piece to its continued adoption. This JV allows us to take our dry natural gas by-product and monetize it into power, realizing a much higher net price. Additionally, we are enthusiastic to partner with the Sharon AI team as they have a proven track record in the development of high compute data centers. Our shareholders will benefit from our joint ownership and partnership in this project and what we anticipate will grow beyond a 90MW project.”
New Era is set to become a publicly-listed company through the merger with Roth CH Acquisition V Co., a special-purpose acquisition company.
John Lipman, co-CEO of Roth CH Acquisition V Co., said: “We are thrilled to see New Era Helium and Sharon AI come together on this potential Joint Venture. We see this as a new revenue, profit, and growth stream for New Era Helium to use its large natural gas reserves to provide a reliable consistent power energy source to the rapidly expanding AI Data center market. New Era Helium’s roots in the Permian Basin will provide this proposed partnership with the strategic know-how and local relationships for power, supply, and construction.”
