1606 Corp. (OTC: CBDW) entered into a non-binding term sheet to acquire a 55-MW power generation facility and a 50,000-sq.-ft. climate-controlled warehouse configured for data center operations in Texas for around $11.67 million.
The proposed deal includes roughly 132 acres of real property, associated equipment, permits and infrastructure assets. The facility is designed to operate as a behind-the-meter captive power generation asset supporting AI and high-density computing operations.
The deal consists of $7.5 million in cash at closing and the assumption of around $4.17 million in existing debt. The company expects to fund the acquisition through a combination of capital sources and anticipates closing on or before March 11, 2026, subject to certain conditions.
"This transaction represents a key milestone in executing our strategy to develop a scalable portfolio of energy infrastructure assets capable of supporting next-generation AI and data center demand," 1606 Corp. CEO and Chairman Austen Lambrecht said in a statement.
The deal is expected to close on or before March 11, 2026, subject to the execution of final documentation and the satisfaction of customary closing conditions.