1606 Corp. Acquires Texas Property with Power Infrastructure for AI Data Center Development

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 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.

Under the terms of the agreement, 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. 1606 Corp. has executed the agreement and has made a substantial earnest money deposit in connection with the transaction as the company advances toward closing. The Company has already received initial inbound interest from data center operators regarding potential power supply and facility lease arrangements at the property.

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 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 site includes land, improvements, equipment, permits, and associated development rights tied to the property, which the Company believes creates a unique platform for power-intensive applications such as data centers and digital infrastructure. The transaction is expected to close April 15th following completion of customary closing conditions and due diligence. 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.

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%. 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. As grid congestion and connection delays intensify, these private generation assets offer a strategic advantage for hyperscalers and colocation providers alike. 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. Sources for market data include industry reports from research firms covering the captive power and data center markets.