1606 Corp. 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 designed to operate as a behind-the-meter captive power generation asset supporting AI and high-density data center projects onsite. The purchase consideration consists 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 acquisition strengthens 1606 Corp.'s scalable energy portfolio and positions the Company to capitalize on accelerating global demand for AI-driven data center power solutions. The transaction represents a key milestone in executing the Company's strategy to develop a scalable portfolio of energy infrastructure assets capable of supporting next-generation AI and data center demand. 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.
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% according to Mordor Intelligence's Captive Power Plant Market Report. 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% as detailed in Grand View Research's Data Center Power Market Size & Trends report.
Driven by the rapid expansion of AI workloads and high-density computing, 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's Data Center Grid Power Demand Forecast. This accelerating demand is fueling investments in captive and on-site power assets 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 multiple regions including 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 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.
