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 land and is designed to operate as a behind-the-meter captive power generation asset, directly supporting artificial intelligence and high-density computing infrastructure on-site.
The acquisition represents a strategic expansion into captive power infrastructure for AI and data centers, strengthening 1606 Corp.'s scalable energy portfolio. The company anticipates funding the purchase through $7.5 million in cash at closing and the assumption of approximately $4.17 million in existing debt related to the power plant. 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 customary closing conditions.
This transaction occurs against a backdrop of accelerating global demand for data center power solutions driven by AI expansion. According to industry reports, the global captive power generation market was valued at approximately $227.9 billion in 2025 and is projected to reach $310.9 billion by 2030, representing a compound annual growth rate of 6.4%. The data center power infrastructure market specifically is expected to expand from $20.2 billion in 2024 to $42.4 billion by 2030, growing at a CAGR of 13.2%.
Driven by the rapid expansion of AI workloads, 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 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.
Austen Lambrecht, CEO and Chairman of 1606 Corp., stated that this 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.
For more information about the company, visit https://cbdw.ai. Additional news and updates relating to 1606 Corp. are available in the company's newsroom at https://tinyurl.com/cbdwnewsroom.
