Key Highlights

• Empery Digital (NASDAQ: EMPD) will contribute $65 million to a Midwest AI data center joint venture, securing a 25% stake in the partnership.

• The project targets a 150 MW facility with potential to expand to 300 MW, backed by a $230 million acquisition agreement.

• A non‑binding letter of intent outlines a long‑term triple‑net lease framework with a leading compute provider.

• TexStack Infrastructure holds 75% of the venture, with Empery guaranteeing additional capital calls if required.

Empery Digital (NASDAQ: EMPD) has entered a strategic partnership to develop a Midwest AI data center, committing $65 million to the venture. The deal marks a significant expansion into high‑performance computing infrastructure, aligning with growing demand for artificial‑intelligence workloads.

Joint Venture Structure

Empery Digital and TexStack Infrastructure, a subsidiary of Cardinal Power LLC, formed a Delaware‑based partnership to acquire and develop powered land properties. Empery contributed an initial $2.9 million, with a further $62.1 million pledged upon closing the property acquisition. TexStack holds 75% of the venture, while Empery secures a 25% stake.

Property Acquisition Terms

The partnership signed a definitive agreement to purchase a Midwest property for approximately $230 million. The site, currently an industrial facility, includes a substation and 150 MW of available power capacity. A load study confirmed potential to upgrade capacity to 300 MW, supporting AI and high‑performance computing needs.

Funding and Guarantees

TexStack made an initial $2.5 million capital contribution, while Empery agreed to irrevocably guarantee additional capital calls. If the property purchase agreement is terminated before closing, $2.5 million of contributions will return to TexStack, with $400,000 allocated to Empery.

Lease and Revenue Potential

A non‑binding letter of intent with a leading compute provider outlines a triple‑net lease framework. The parties intend to secure long‑term lease revenue tied to the facility’s operation and any future power expansion. The letter of intent, details the envisioned lease structure.

Strategic Vision

The partnership aims to replicate this model by acquiring additional powered land properties for AI and high‑performance computing data centers. Empery Digital will collaborate with Hunt Properties‑affiliated Cardinal Power to identify and fund future opportunities in the sector.

Timeline and Conditions

The property acquisition is expected to close in the third quarter of 2026, pending due diligence and a review period ending July 29. TexStack, as managing member, retains discretion over closing decisions, including extensions to the review period.

 

This article is for informational purposes only and does not constitute financial advice. Please consult a licensed financial adviser before making investment decisions.