1606 Corp to Acquire Plot of Land in Texas for AI Data Center Development

Why It Matters

The acquisition gives 1606 Corp a vertically integrated power‑and‑data asset, strengthening cash flow and positioning it for the surging AI infrastructure demand. It also signals deeper private‑sector investment in Texas’s emerging AI data‑center ecosystem.

Key Takeaways

• 1606 Corp to buy 132 acres in Lufkin, Texas
• Includes 55 MW power plant and 50,000 sq ft warehouse
• Deal valued at $11.67 million, $7.5 M cash, $4.17 M debt
• Targeted closing by March 11 2026, supports AI data‑center demand
• Negotiating Sim Agro acquisition to manage plant operations

Pulse Analysis

Texas continues to cement its role as a strategic hub for AI infrastructure, thanks to abundant land, favorable tax regimes, and proximity to major energy corridors. 1606 Corp’s planned 132‑acre site in Lufkin taps into these advantages, pairing a sizable 55 MW generation asset with a purpose‑built data‑center warehouse. By securing on‑site power generation, the company can offer customers lower latency and more reliable energy supply—critical factors for high‑density AI workloads that are increasingly sensitive to power interruptions and cost volatility.

Financially, the $11.67 million deal blends cash and debt, reflecting a disciplined capital‑allocation approach that preserves liquidity while expanding the firm’s asset base. The behind‑the‑meter configuration enables 1606 to capture the spread between generation costs and data‑center electricity rates, bolstering long‑term cash flow. Moreover, the acquisition aligns with the firm’s broader strategy to build a portfolio of energy‑infrastructure assets that can be leveraged for future financing or a higher‑tier exchange listing, enhancing shareholder value.

The move also underscores a broader industry trend: AI‑centric data centers are seeking integrated power solutions to meet escalating demand. With competitors like Amp Z eyeing multi‑gigawatt projects nearby, 1606’s potential Sim Agro acquisition could provide operational expertise and scale, creating a competitive edge. The development promises local economic benefits, including job creation and increased tax revenue, while reinforcing Texas’s reputation as the go‑to destination for next‑generation compute facilities.

1606 Corp to acquire plot of land in Texas for AI data center development

Also acquired adjacent 55 MW power generation facility, expected to power data center · February 18 2026 · Zachary Skidmore

AI infrastructure developer 1606 Corp has signed a non‑binding term sheet to acquire a 55 MW power generation facility and a 50,000 sq ft (4,645 sqm) warehouse in Lufkin, Texas, where it plans to develop a data center.

![Image: 1606 Corp]

The deal would see the company acquire approximately 132 acres of land, along with associated equipment, permits, entitlements, and other infrastructure.

According to the company, the facility will be designed to operate as a behind‑the‑meter generation asset, supplying on‑site power for AI and high‑density data‑center workloads. While not disclosed, the facility is likely to be powered by natural gas.

The deal is expected to be completed for approximately $11.67 million, comprising $7.5 million in cash and the assumption of roughly $4.17 million in existing debt tied to the plant.

The parties have agreed to an exclusivity period during negotiations of definitive agreements, with closing targeted for on or before March 11 2026, subject to final documentation and customary conditions.

1606 Corp said the acquisition would form a core asset within its strategy to build a portfolio of energy infrastructure serving AI and data‑center demand.

“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,” said Austen Lambrecht, CEO and chairman of 1606 Corp. “We believe this acquisition strengthens our long‑term cash‑flow potential and positions the Company to pursue higher‑tier exchange listing standards.”

In addition, 1606 Corp said it is in negotiations to acquire Sim Agro Inc., a private power‑plant operations and energy‑infrastructure company. If the transaction goes ahead, the company is expected to oversee operations at the Texas facility and support the company’s broader generation platform.

1606 Corp was founded in 2019 and is headquartered in Phoenix, Arizona.

Lufkin, some 120 miles (193 km) north of Houston in Angelina County, could see another large data‑center campus developed. Amp Z is looking to develop a multi‑gigawatt site at a former paper mill.