1606 Corp. (OTC: CBDW) has entered into a non-binding term sheet to acquire a 55-megawatt power generation facility and a 50,000 square-foot climate-controlled warehouse in Texas configured for data center operations. The proposed $11.67 million transaction includes approximately 132 acres of real property and associated infrastructure assets, with the facility designed to operate as a behind-the-meter captive power generation asset supporting artificial intelligence and high-density data center projects onsite.
The acquisition represents a strategic expansion into captive power infrastructure for AI and data centers, strengthening 1606 Corp.'s scalable energy portfolio. The transaction contemplates $7.5 million in cash at closing and the assumption of approximately $4.17 million in existing indebtedness related to the power plant. The parties have agreed to an exclusivity period during negotiations of definitive agreements, with the transaction expected to close on or before March 11, 2026, subject to customary closing conditions.
This development matters because it addresses the critical energy infrastructure needs created by the explosive growth of artificial intelligence workloads. 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%. Within this sector, 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%, according to industry reports from Mordor Intelligence and Grand View Research.
The accelerating demand for AI computing power is creating unprecedented pressure on energy systems. 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 forecasts. This surge is fueling investments in captive and on-site power assets as operators seek energy security, cost control, and sustainability solutions. Captive energy systems are increasingly viewed as critical enablers of AI infrastructure, ensuring reliable, low-latency power delivery for compute-intensive operations that cannot tolerate interruptions.
For readers and industry stakeholders, this acquisition signals the growing importance of dedicated power infrastructure for technological advancement. As grid congestion and connection delays intensify, private generation assets offer strategic advantages for hyperscalers and colocation providers. The sector's evolution toward renewable and hybrid energy models presents long-term growth opportunities for investors focused on infrastructure, clean energy, and digital transformation, as noted in analysis from Deloitte Insights.
1606 Corp. is currently in negotiations to acquire Sim Agro Inc., a privately held power plant operations and energy infrastructure company with international expertise in high-efficiency generation projects. Sim Agro Inc., led by President Dr. Karthik Raghavan, has built and operated power plants across multiple continents. Upon closing, Sim Agro is expected to oversee operations of the Texas generation facility and support 1606 Corp.'s broader infrastructure platform development.
The power plant acquisition is expected to serve as a foundational asset within 1606 Corp.'s broader platform focused on energy reliability for AI workloads, infrastructure ownership, captive generation solutions, and scalable power for hyperscale and colocation operators. This strategic move positions the company to capitalize on accelerating global demand for AI-driven data center power solutions while strengthening its long-term cash flow potential and positioning for higher-tier exchange listing standards.
