1606 Corp. Bets on Texas Power Plant to Fuel AI's Energy Demands

PHOENIX, AZ – February 17, 2026 – In a move that underscores the immense energy appetite of the artificial intelligence boom, power infrastructure firm 1606 Corp. (OTC: CBDW) announced today it has signed a term sheet to acquire a 55-megawatt power generation facility and an adjacent data center-ready site in Texas. The proposed $11.67 million transaction signals a growing trend where access to dedicated, reliable power is becoming as critical as the computing hardware itself.

The deal involves a sprawling 132-acre property in Lufkin, Texas, which includes the power plant and a 50,000-square-foot, climate-controlled warehouse already configured for high-density data center operations. This acquisition is designed to create a “behind-the-meter” captive power solution, allowing a future data center to draw electricity directly from its own on-site source, bypassing the public grid.

A Strategic Pivot to Powering AI

For 1606 Corp., a Nevada-based company trading on the over-the-counter market, this acquisition represents a cornerstone of its strategy to build a portfolio of energy assets catering directly to the voracious needs of AI and industrial-scale computing. The deal is structured with a $7.5 million cash payment at closing and the assumption of approximately $4.17 million in existing debt tied to the power plant. The parties have entered an exclusivity period, with a target closing date on or before March 11, 2026, pending final agreements and due diligence.

“This transaction represents a key milestone in executing our strategy to develop a scalable portfolio of energy infrastructure assets capable of supporting next-generation AI and data center demand,” said Austen Lambrecht, CEO and Chairman of 1606 Corp., in a statement. He added that the acquisition is expected to bolster the company's cash flow potential and support its ambition to meet the stringent listing standards of a higher-tier stock exchange.

The concept of captive power is central to the deal's strategic importance. As AI models become more complex and data centers pack more powerful processors into smaller spaces, their electricity consumption skyrockets. This creates a significant strain on public utility grids, which can lead to connection delays, power quality issues, and price volatility. By owning both the power source and the data center site, an operator can ensure a stable, low-latency supply of electricity, which is critical for the uninterrupted, compute-intensive workloads that define modern AI.

The Soaring Energy Demands of a Digital Future

The move by 1606 Corp. is not happening in a vacuum. It reflects a seismic shift across the technology and energy sectors driven by the exponential growth of AI. According to industry projections from S&P Global, global data center electricity demand is forecast to more than double in just five years, surging from 61.8 gigawatts in 2025 to an estimated 134.4 gigawatts by 2030. This explosive growth is fueling a parallel boom in the infrastructure needed to power it.

The market for captive power generation, valued at nearly $228 billion in 2025, is projected by Mordor Intelligence to climb to over $310 billion by 2030. Within that, the data center power market itself is expanding at an even more aggressive pace. A report from Grand View Research projects this specific segment will grow from $20.2 billion in 2024 to $42.4 billion by 2030, representing a compound annual growth rate of 13.2%.

Hyperscalers and colocation providers are increasingly viewing on-site power generation—from natural gas plants to renewable microgrids and battery storage—as a competitive necessity. These private energy islands offer a hedge against grid instability and provide the scalability required to meet the relentless pace of AI development, a point highlighted in recent analysis by Deloitte Insights on the sustainability challenges of Generative AI.

A High-Stakes Bet in the Texas Energy Arena

The choice of Texas for this venture is significant. The state's deregulated energy market, managed by the Electric Reliability Council of Texas (ERCOT), offers opportunities for competitive pricing and innovation. However, the Texas grid has also faced well-publicized reliability challenges, making the prospect of energy independence particularly attractive for mission-critical facilities like data centers.

For an OTC-listed firm like 1606 Corp., whose stock trades for fractions of a penny, the $11.7 million acquisition is a bold and transformative bet. Success could position the company as a key infrastructure provider in a high-growth niche, potentially attracting significant investor interest and validating its strategy to uplist to a major exchange like the NASDAQ or NYSE. The risk, however, lies in execution. Finalizing the deal, securing the necessary capital, and successfully operating a complex industrial asset are significant hurdles.

The company's leadership team, which includes technology and cloud infrastructure veterans from Oracle, AWS, and Microsoft, suggests it has the strategic vision to navigate this complex intersection of energy and technology. The Lufkin facility is intended to be a foundational asset, proving out a model that combines energy reliability with direct infrastructure ownership for AI workloads.

Building an Integrated Power and Operations Platform

Recognizing the operational complexities, 1606 Corp. is also in negotiations to acquire Sim Agro Inc., a private company specializing in power plant operations and energy infrastructure. According to the announcement, Sim Agro is expected to take over operations of the Texas facility upon the deal's closing.

Led by President Dr. Karthik Raghavan, Sim Agro reportedly brings a wealth of international experience in building and operating high-efficiency generation projects across the globe, including in India, Europe, and the Middle East. Integrating this operational expertise is a crucial component of 1606 Corp.'s plan. It signals to investors that the company is not merely acquiring a physical asset but is also securing the human capital required to run it efficiently and support the broader platform's development.

As the digital and physical worlds continue to merge, the line between technology companies and energy companies is blurring. This acquisition is a clear example of that convergence, creating an integrated system where power generation is no longer a downstream utility cost but a core, upstream component of the digital infrastructure itself. This integrated approach may soon become the blueprint for powering the next wave of digital transformation.