The convergence of two cutting-edge sectors—energy and artificial intelligence—has the potential to transform markets. Sharon AI and New Era Helium Corp. (NEH) are doing exactly that by planning a 90 MW net-zero energy data center in the Permian Basin, Texas. This collaboration signals more than just a technological leap; it’s a roadmap for sustainability in AI infrastructure.
In this blog post, we’ll dive into the key aspects of this groundbreaking partnership and its potential impact on the AI and energy ecosystems.
Access the full announcement here.
Can Data Centers Really Achieve Net-Zero Emissions?
Data centers have long been notorious for their massive energy consumption. But Sharon AI, a leader in cloud GPU compute infrastructure and AI solutions, believes it’s time for a change. By partnering with New Era Helium, Sharon AI aims to build a net-zero emissions data center that doesn’t just talk the talk but walks the walk when it comes to sustainability.
The joint venture plans to leverage NEH’s vast energy infrastructure, including its Pecos Slope Field—a massive 137,000-acre property rich in natural gas and helium. But here’s the twist: this isn’t your traditional power plant. The planned 90 MW gas-fired power facility will incorporate carbon capture technology capable of storing up to 250,000 metric tons of CO2, qualifying the venture for lucrative 45Q tax credits. This approach effectively transforms a carbon-intensive process into a green energy solution.
What’s the Strategic Advantage Behind This Joint Venture?
The AI industry is exploding, with data centers at the heart of this digital revolution. However, ensuring uninterrupted power supply for HPC workloads remains a challenge. That’s where New Era Helium’s expertise comes into play. By tapping into their energy reserves, Sharon AI can secure a steady, reliable power source for its high-density, liquid-cooled Tier 3 data centers.
Wolf Schubert, CEO of Sharon AI, emphasizes, “We are thrilled to collaborate with New Era Helium. Their expertise in energy infrastructure will ensure our AI data centers are not only efficient but sustainable.” The project will also involve Sharon AI’s ecosystem partners like Nvidia and Lenovo, utilizing cutting-edge GPU technologies to optimize AI and HPC workloads.
How Does This Collaboration Unlock New Revenue Streams for New Era Helium?
For New Era Helium, this partnership marks a significant pivot. Traditionally focused on helium and natural gas extraction, the company now has a new avenue to monetize its resources—power generation. As E. Will Gray II, CEO of New Era Helium, explains, “Turning our dry natural gas by-product into power allows us to achieve higher profitability while supporting Sharon AI’s data center operations.”
This move aligns perfectly with NEH’s vision of diversifying its revenue streams. By leveraging their natural gas reserves, they can deliver consistent power to AI data centers—a market expected to grow exponentially in the coming years. The joint venture structure includes a 50/50 profit-sharing model, making it a win-win for both companies.
What Does This Mean for AI Data Centers in the U.S.?
The collaboration between Sharon AI and NEH is set to reshape how AI data centers operate in the U.S., especially within the energy-rich Permian Basin. The joint venture’s initial focus on a 90 MW facility could be just the beginning, with plans to scale up significantly based on demand. The companies are already in talks with potential offtake partners, hinting at future expansions that may cater to hyperscalers and large tech firms looking for sustainable energy solutions.
Moreover, the project’s emphasis on liquid cooling technology is a game-changer. Liquid cooling is significantly more efficient than traditional air cooling, which means Sharon AI’s data centers will not only be greener but also more cost-effective in the long run. This is a critical factor for companies needing scalable AI infrastructure without the environmental baggage.
Could This Joint Venture Be a Blueprint for Future Collaborations?
This collaboration isn’t just about two companies coming together; it represents a blueprint for future data center projects. The combination of AI, energy efficiency, and sustainability could set a new industry standard. With NEH’s planned merger with Roth CH Acquisition V Co., which is set to go public on Nasdaq, the timing couldn’t be better. The expanded access to capital will likely accelerate the joint venture’s progress, allowing them to scale operations rapidly.
John Lipman, Co-CEO of Roth CH, noted, “This joint venture will create new revenue streams by using New Era Helium’s natural gas reserves to power Sharon AI’s data centers. It’s a perfect example of leveraging natural resources to fuel the AI revolution.”
What’s Next for Sharon AI and NEH?
With initial planning and scoping already completed, the joint venture partners are now focusing on detailed engineering and securing offtake agreements. This is just the first step in what could be a series of expansions across the U.S. The possibilities are vast, with potential implications not just for AI but for the entire data infrastructure landscape.
Sharon AI and NEH have scheduled a webinar on November 13, 2024, where they will dive deeper into their ambitious plans. Register for the webinar here to learn more.
This partnership between Sharon AI and New Era Helium is a clear indication that the future of data centers lies in sustainable, scalable, and efficient energy solutions. By merging AI with energy expertise, the joint venture is set to unlock new possibilities for both industries. But the real question remains—will other tech and energy giants follow suit?
