1606 Corp. has executed a Purchase and Sale Agreement to acquire a 132-acre property in Lufkin, Texas, featuring an existing power generation facility and infrastructure suitable for large-scale data center development. The total purchase price is approximately $11.2 million, consisting of cash at closing and assumption of an existing lien. The transaction is expected to close on April 15th following completion of customary conditions.
The property includes land, improvements, equipment, and development rights, making it well positioned for data center infrastructure supported by on-site power generation. A 50,000-square-foot warehouse on site is designed to support rapid deployment of data center infrastructure. According to the company, the power generation asset was valued at $164 million in the most recent CBRE report.
This acquisition addresses a critical bottleneck in the data center industry: securing reliable power for energy-intensive operations. The global captive power generation market, valued at approximately $227.9 billion in 2025, is projected to reach $310.9 billion by 2030, representing a compound annual growth rate of 6.4%, according to Mordor Intelligence's Captive Power Plant Market Report. Simultaneously, the data center power infrastructure market is expected to expand from $20.2 billion in 2024 to $42.4 billion by 2030, growing at a CAGR of 13.2%, as detailed in Grand View Research's Data Center Power Market Size & Trends report.
The accelerating demand is driven primarily by the expansion of artificial intelligence workloads and high-density computing. Global data center electricity demand is forecast to more than double, rising from 61.8 GW in 2025 to 134.4 GW by 2030, according to S&P Global's Data Center Grid Power Demand Forecast. This creates significant pressure on traditional power grids, making properties with captive power generation increasingly valuable strategic assets.
"This acquisition represents an important step in our strategy to secure power-backed infrastructure suitable for next-generation data center deployment," said Austen Lambrecht, CEO of 1606 Corp. "Properties with large acreage and existing power infrastructure are increasingly difficult to secure. We believe this asset provides a strong foundation for future development and strategic partnerships." The company has already received initial inbound interest from data center operators regarding potential power supply and facility lease arrangements.
The importance of this transaction extends beyond the immediate real estate acquisition. Captive energy systems are increasingly viewed as critical enablers of AI infrastructure, ensuring reliable, low-latency power delivery for compute-intensive operations. As grid congestion and connection delays intensify, these private generation assets offer a strategic advantage for hyperscalers and colocation providers. The sector's evolution toward renewable and hybrid energy models presents long-term growth opportunities, as analyzed in Deloitte Insights' GenAI Power Consumption and Sustainable Data Centers research.
1606 Corp. is concurrently in advanced negotiations to acquire Sim Agro Inc., a privately held power-plant operations and energy infrastructure company. Following completion of that acquisition, Sim Agro is expected to operate the power generation facility associated with the company's power and data infrastructure platform. This dual strategy of acquiring both physical assets and operational expertise reflects the complex requirements of modern data center development, where energy management has become as crucial as computational capacity.
