Midland-based New Era Energy & Digital, Inc. has entered into a land option purchase agreement for approximately 3,500 acres in Lea County, New Mexico. The company plans to develop a large-scale artificial intelligence (AI) data center campus on the site.
According to a news release, the project is valued at over $1 billion and aims to transform the site into a multi-gigawatt AI hub. It will feature more than 2 gigawatts (GW) of natural gas generation and a planned nuclear installation exceeding 5 GW. Initial power delivery is anticipated in 2028. The company selected the Lea County location due to its access to major gas transmission lines, existing power infrastructure, abundant water supply, skilled local workforce, and high-speed fiber connectivity. Engineering and site evaluation are expected to begin within 30 days, with gas availability already confirmed for the natural gas facilities. New Era is finalizing technology selection for the nuclear component, which will provide safe, efficient, and sustainable energy to power hyperscale AI operations.
The development marks New Era’s first wholly owned project, separate from its Texas Critical Data Centers joint venture. In addition to powering its own facilities, the company plans to offer powered shell buildings and powered land lease options for AI-focused enterprises. This approach aims to enable rapid deployment and reduce tenant costs through its vertically integrated strategy.
New Era is collaborating with the State of New Mexico to align the project with state economic and environmental goals. “Lea County’s deep energy heritage provides a foundation of skilled talent that directly supports our next-generation digital infrastructure vision,” said E. Will Gray II, CEO of New Era Energy & Digital. Gray added that they 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.