New Era Energy & Digital (NUAI) has secured a $116 million letter of credit to support its Power Purchase Agreement and announced a strategic pivot for its Texas Critical Data Center (TCDC) project. The company will now pursue direct leasing agreements with hyperscale tenants, moving away from its previous plan to develop the project through a joint venture.
Key Details
- Financing Agreement: On October 7, 2026, subsidiaries entered into an agreement with Macquarie Bank for a $116 million standby letter of credit to secure obligations under a Power Purchase Agreement with Luminant ET Services Company LLC.
- Collateral & Warrants: The facility is secured by ~$118.3 million in cash collateral. A $60 million loan draw used to fund part of the collateral triggered the issuance of warrants to purchase 413,055 shares at an exercise price of ~$7.26.
- Strategic Shift: The company will leverage its site ownership and contracted power for the TCDC Project to negotiate directly with prospective hyperscale tenants, discontinuing its search for a joint venture developer.