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. In the most recent CBRE report, the power generation asset was valued at $164 million.
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 site also includes a 50,000-square-foot warehouse designed to support rapid deployment of data center infrastructure, making it immediately attractive to potential data center operators. Management believes the site's combination of acreage, infrastructure, and power availability makes it well suited for high-density computing and data center development.
This acquisition comes at a critical time for the data center industry, particularly for AI infrastructure. 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 – Data Center Grid Power Demand Forecast. 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% as noted in the Mordor Intelligence – Captive Power Plant Market Report.
"This acquisition represents an important step in our strategy to secure power-backed infrastructure suitable for next-generation data center deployment," said Austen Lambrecht, CEO of 1606 Corp. "Properties with large acreage and existing power infrastructure are increasingly difficult to secure. We believe this asset provides a strong foundation for future development and strategic partnerships." The Company has already received initial inbound interest from data center operators regarding potential power supply and facility lease arrangements at the property.
The transaction's importance extends beyond the immediate acquisition. Captive energy systems are increasingly viewed as critical enablers of AI infrastructure, ensuring reliable, low-latency power delivery for compute-intensive operations. As grid congestion and connection delays intensify, these private generation assets offer a strategic advantage for hyperscalers and colocation providers alike. 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 – Data Center Power Market Size & Trends.
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 that acquisition, Sim Agro is expected to operate the power generation facility associated with the Company's recently announced power and data infrastructure platform. The Texas property transaction is expected to close April 15th following completion of customary closing conditions and due diligence.
