1606 Corp. Announces Strategic Acquisition of Texas Power Generation Facility for AI Data Center Infrastructure

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 real property along with associated equipment, improvements, permits, and infrastructure assets designed to operate as a behind-the-meter captive power generation asset supporting artificial intelligence and high-density data center infrastructure projects onsite.

The acquisition represents a strategic expansion into captive power infrastructure for AI and data centers, strengthening 1606 Corp.'s scalable energy portfolio as global demand for AI-driven data center power solutions accelerates. The transaction contemplates $7.5 million in cash at closing and assumption of approximately $4.17 million in existing indebtedness related to the power plant, with funding expected through capital sources aligned with the company's broader power and infrastructure strategy. The parties have agreed to an exclusivity period during negotiations of definitive agreements, with closing anticipated on or before March 11, 2026, subject to final documentation and customary closing conditions.

According to CEO and Chairman Austen Lambrecht, 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.

Concurrently, 1606 Corp. is 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. Upon closing, Sim Agro is expected to oversee operations of the Texas generation facility and support 1606 Corp.'s broader infrastructure platform. The company, led by President Dr. Karthik Raghavan, has built and operated power plants across India, Europe, South Korea, the Middle East, and the United States.

The acquisition comes amid significant growth projections for the captive power generation market, valued at approximately $227.9 billion in 2025 and 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% according to Grand View Research's Data Center Power Market Size & Trends report.

Driven by 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 as grid congestion and connection delays intensify.