Aug 17, 2026 earnings call — TCDC permits, power and team built
Construction permits received; Phases 1 and 2 total approximately 757 megawatts gross capacity.
Revenue $0.0B (est $0.0B) · EPS $-0.18 (est $-0.09)
Key quotes
"On power, our strategy is built around dedicated generation, including behind-the-meter. We are not competing for constrained grid capacity; we're supplementing Texas power, not drawing it away from anyone."
"We are pleased to confirm the receipt of two key permits from Ector County, the development structure permit and the driveway approach permit."
"First, we have Jose Rodriguez, our Chief Operating Officer, who has run data center engineering and critical environment operations at Microsoft, AWS, and TikTok."
Analyst Q&A 4
PPA process and grid approval timing
Q (Mike Grondahl · Northland): The analyst asked how the PPA process works, the likelihood and timing of getting it, and whether other tenants are interested. He also asked why the project is not exposed to ERCOT Batch Zero and the value of the power and water strategy.
A: Management said the PPA is a contracting process with contracts materially drafted and approvals remaining. They noted strong interest from many major tenants but plan to proceed with the current partner group. They explained they are not exposed to Batch Zero because they will use existing power or new power they build and that their water plan uses produced water kept in the basin.
"Yes, plain and simple, that directive was aimed at new parasitic load being requested from the grid, which in the state of Texas is referred to as the Batch Zero process." — Charles Nelson (CEO·CHAIR)
Phase 1 timing, pre-lease spending, build options
Q (Nick Giles · B. Riley): The analyst asked if Phase 1 timing is still on track for 4Q 2027, how much pre-lease capital they might spend and any long lead items, and what data center design options they are considering.
A: Management said they are still shooting for Phase 1 to have 2027 power and believe that is achievable if everyone moves together. On pre-lease spending, they said they have been spending to prepare the site but have no firm dollar limit and will be responsible with TopCo cash; partners have already procured many long-lead items so they do not expect major CAPEX before a lease. For design, they plan a stick-build initially but are also considering modular options that could reach RFS faster.
"So for the first phase working with our partners, we're looking at a stick-build approach initially." — Jose Rodriguez (COO)
Competition, future growth, why Phase 2 grew
Q (Derrick Whitfield · Texas Capital): The analyst asked how being bring-your-own generation affects competition from projects subject to Batch Zero and what competition they expect. He also asked where the company wants to grow beyond TCDC and why Phase 2 capacity was increased from 450 to 550.
A: Management said there is high uncertainty for other projects about getting power under Batch Zero, while they have a firm grasp on their resources and timing. They see two growth opportunities: smaller "inference" modular sites (around 100-megawatt and below) and repeating larger greenfield developments like TCDC, and they built the team to pursue both. The Phase 2 increase was driven by what they can permit under a standard air permit; going above that would require a PSD permit with a longer timeline.
"Yes, I think we've spoken pretty openly about this, but really we see two main opportunities and we've kind of assembled a team to tackle them accordingly." — Charles Nelson (CEO·CHAIR)
Surface waiver timing and future ownership
Q (Nick Giles · B. Riley): The analyst asked the timing for the one remaining surface lease waiver and what resolving it would mean for the site. He also asked whether smaller future projects would be New Era independent or pursued with Stream.
A: Management said the remaining surface waiver is expected relatively soon and that everyone has agreed in principle, so one more signature from an operator will complete it. They described the site as uniquely favorable because nearby operators have mostly drilled productive formations, which helps insurance and reduces risk. For smaller projects, they view them as New Era opportunities but said Stream has been a good partner and they could work together where it makes sense, though they will likely carve their own path.
"So just one more signature remaining from an operator and we're good to go." — Ted Warner (CFO)