1606 Corp. has executed a Purchase and Sale Agreement to acquire a 132-acre property in Lufkin, Texas that includes an existing power generation facility and infrastructure suitable for large-scale data center development. The total purchase price for the property is approximately $11.2 million, consisting of cash consideration at closing and the assumption of an existing lien associated with the facility. In the most recent CBRE report the power generation asset was valued at $164 million dollars.
The property includes approximately 132 acres of land along with improvements, equipment, and associated development rights, making it well positioned for the deployment of data center infrastructure supported by on-site power generation. The property also includes a 50,000-square-foot warehouse designed to support rapid deployment of data center infrastructure, making the site immediately attractive to potential data center operators. The Company has already received initial inbound interest from data center operators regarding potential power supply and facility lease arrangements at the property.
This acquisition represents an important step in the company's strategy to secure power-backed infrastructure suitable for next-generation data center deployment. Properties with large acreage and existing power infrastructure are increasingly difficult to secure, and this asset provides a strong foundation for future development and strategic partnerships. The site's combination of acreage, infrastructure, and power availability makes it well suited for high-density computing and data center development.
The transaction is expected to close April 15th following completion of customary closing conditions and due diligence. 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, 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% according to Grand View Research.
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. 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 advanced negotiations to acquire Sim Agro Inc., a privately held power-plant operations and energy infrastructure company with extensive international experience in high-efficiency energy generation projects. Following completion of the acquisition, Sim Agro is expected to operate the power generation facility associated with the company's recently announced power and data infrastructure platform. The site includes land, improvements, equipment, permits, and associated development rights tied to the property, which creates a unique platform for power-intensive applications such as data centers and digital infrastructure.
