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, associated equipment, improvements, permits, entitlements, operating data, and related infrastructure assets. The facility is designed to operate as a behind-the-meter captive power generation asset, supporting artificial intelligence and high-density data center infrastructure projects onsite.
The transaction contemplates total purchase consideration of approximately $11.67 million, comprised of $7.5 million in cash at closing and the assumption of approximately $4.17 million in existing indebtedness related to the power plant. The Company anticipates funding the acquisition through a combination of capital sources aligned with its broader power and infrastructure strategy. 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 the execution of final documentation and satisfaction of customary closing conditions.
This acquisition represents a strategic expansion into captive power infrastructure for AI and data centers, strengthening 1606 Corp.'s scalable energy portfolio. The Company is positioning itself to capitalize on accelerating global demand for AI-driven data center power solutions. According to industry reports, 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%.
The rapid expansion of AI workloads and high-density computing is driving significant increases in global data center electricity demand, which is forecast to more than double from 61.8 GW in 2025 to 134.4 GW by 2030. This accelerating demand is fueling investments in captive and on-site power assets, including renewable microgrids, battery storage, and modular generation systems, as operators seek energy security, cost control, and sustainability. Captive energy systems are increasingly viewed as critical enablers of AI infrastructure, ensuring reliable, low-latency power delivery for compute-intensive operations.
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 India, Europe, South Korea, the Middle East, and the United States. Upon closing, Sim Agro is expected to oversee operations of the Texas generation facility and support 1606 Corp.'s broader infrastructure platform. The Company's leadership emphasizes that this transaction represents a key milestone in executing their strategy to develop a scalable portfolio of energy infrastructure assets capable of supporting next-generation AI and data center demand.
As grid congestion and connection delays intensify, private generation assets offer a strategic advantage for hyperscalers and colocation providers. The sector's evolution toward renewable and hybrid energy models presents a long-term growth opportunity for investors focused on infrastructure, clean energy, and digital transformation. For more information about the company, visit https://cbdw.ai. Additional news and updates relating to CBDW are available at https://tinyurl.com/cbdwnewsroom.
