$20M Bet on AI Data Centers: Empery Digital Takes Stake in Cardinal Data Power
Event summary
- $20M preferred equity investment in Cardinal Data Power (8% stake) closed July 20, 2026.
- Part of $70M Series A funding for West Texas data center campus with 750 MW Phase I.
- First power expected in 2027, scaling to 1 GW by 2029 and potentially 5 GW long-term.
- Cardinal Data Power develops AI infrastructure-powered data centers with Hunt Properties affiliation.
The big picture
Empery Digital's investment signals growing institutional interest in the intersection of AI infrastructure and energy solutions. The deal highlights how traditional bitcoin-focused firms are diversifying into high-growth compute sectors, leveraging partnerships with experienced real estate developers to capture value. With $70M raised for this initial project, Cardinal Data Power appears well-capitalized to execute its ambitious West Texas campus plans.
What we're watching
- Execution Risk
- Whether Cardinal Data Power can deliver on its aggressive West Texas timeline and scale plans.
- Strategic Alignment
- How Empery Digital's bitcoin treasury strategy integrates with AI infrastructure investments.
- Market Demand
- The pace at which AI-driven data center demand will justify gigawatt-scale developments.
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