1606 Corp. Signs Term Sheet to Acquire 55 MW Texas Power Generation Facility and 50,000 Sq. Ft. Data Center-Ready Infrastructure Site
$11.7 Million Proposed Acquisition Strengthens AI-Focused Energy Infrastructure Strategy with Behind-the-Meter Power Generation for Data Centers
- 1606 Corp. (OTC: CBDW) Signs Term Sheet to Acquire 55 MW Texas Behind-the-Meter Power Generation Facility – Proposed $11.7 million transaction includes 132 acres and a 50,000 sq. ft. climate-controlled data center-ready infrastructure site designed to support artificial intelligence (AI) and high-density computing operations.
- Strategic Expansion into Captive Power Infrastructure for AI and Data Centers –Acquisition strengthens 1606 Corp.’s scalable energy portfolio, positioning the Company to capitalize on accelerating global demand for AI-driven data center power solutions.
- Sim Agro Inc. Expected to Oversee High-Efficiency Power Plant Operations – Proposed acquisition of Sim Agro Inc. brings international power generation expertise to support operational execution and long-term infrastructure development.
PHOENIX, Feb. 17, 2026 (GLOBE NEWSWIRE) — 1606 Corp. (OTC: CBDW) (“1606” or the “Company”), a publicly traded Nevada corporation focused on power infrastructure and energy assets supporting artificial intelligence (AI), data center, and industrial demand, today announced that it has entered into a non-binding term sheet to acquire a 55-megawatt (MW) power generation facility and a 50,000 square-foot climate-controlled warehouse in Texas configured for data center operations.
The proposed acquisition includes approximately 132 acres of real property, together with associated equipment, improvements, permits, entitlements, operating data, and related infrastructure assets. The facility is designed to operate as a behind-the-meter captive power generation asset, supporting AI and high-density data center infrastructure projects onsite.
The transaction contemplates total purchase consideration of approximately $11.67 million, comprised of $7.5 million in cash at closing and the assumption of approximately $4.17 million in existing indebtedness related to the power plant. The Company anticipates funding the acquisition through a combination of capital sources aligned with its broader power and infrastructure strategy.
The parties have agreed to an exclusivity period during negotiations of definitive agreements. The transaction is expected to close on or before March 11, 2026, subject to the execution of final documentation and the satisfaction of customary closing conditions.
Strategic Significance
“This transaction represents a key milestone in executing our strategy to develop a scalable portfolio of energy infrastructure assets capable of supporting next-generation AI and data center demand,” said Austen Lambrecht, CEO and Chairman of 1606 Corp. “We believe this acquisition strengthens our long-term cash flow potential and positions the Company to pursue higher-tier exchange listing standards.”
The power plant acquisition is expected to serve as a foundational asset within 1606 Corp.’s broader platform focused on:
- Energy reliability for AI workloads
- Infrastructure ownership
- Captive generation solutions
- Scalable power for hyperscale and colocation operators
Integration with Sim Agro Inc.
1606 Corp. is currently in negotiations to acquire Sim Agro Inc., a privately held power plant operations and energy infrastructure company with international expertise in high-efficiency generation projects.
Sim Agro Inc., led by President Dr. Karthik Raghavan, PhD, has built and operated power plants across India, Europe, South Korea, the Middle East, and the United States. Upon closing, Sim Agro is expected to oversee operations of the Texas generation facility and support 1606 Corp.’s broader infrastructure platform.
Industry Context: Captive Power for AI & Data Centers
The global captive power generation market, valued at approximately $227.9 billion in 2025, is projected to reach $310.9 billion by 2030, representing a compound annual growth rate (CAGR) of 6.4%.¹ Within this, the data center power infrastructure market is expected to expand from $20.2 billion in 2024 to $42.4 billion by 2030, growing at a CAGR of 13.2%.²
Driven by the rapid expansion of AI workloads and high-density computing, global data center electricity demand is forecast to more than double, rising from 61.8 GW in 2025 to 134.4 GW by 2030.³ This accelerating demand is fueling investments in captive and on-site power assets — including renewable microgrids, battery storage, and modular generation systems — as operators seek energy security, cost control, and sustainability.
Captive energy systems are increasingly viewed as critical enablers of AI infrastructure, ensuring reliable, low-latency power delivery for compute-intensive operations. As grid congestion and connection delays intensify, these private generation assets offer a strategic advantage for hyperscalers and colocation providers alike. The sector’s evolution toward renewable and hybrid energy models presents a long-term growth opportunity for investors focused on infrastructure, clean energy, and digital transformation.⁴
About 1606 Corp. (OTC: CBDW)
1606 Corp. is focused on building power infrastructure assets supporting AI, data center, and industrial demand. The Company combines experience in technology, AI development, and public company operations to advance scalable energy and digital infrastructure initiatives.
The Company’s leadership includes:
- Austen Lambrecht, CEO – overseeing corporate operations, compliance, and capital markets strategy.
- Gowri Shankar, Director – technology executive with expertise in SaaS, mobile advertising, venture capital, and AI program development.
- Venu Aravamudan, Director – former senior executive at Oracle Cloud, AWS RDS, F5 Networks, VMware, and Microsoft, with over 30 years of experience in enterprise software and cloud infrastructure.
For more information, visit: https://cbdw.ai
Forward-Looking Statements
This press release contains forward-looking statements. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement. These factors include, but are not limited to reliance on unaudited statements, the Company’s need for additional funding, the impact of competitive products and services and pricing, the demand for the Company’s products and services, and other risks that are detailed from time-to-time in the Company’s filings with the SEC. The foregoing list of factors is not exhaustive. Readers should carefully consider the foregoing factors and the other risks and uncertainties discussed in the Company’s most recent reports on Forms 10-K and 10-Q, particularly the “Risk Factors” sections of those reports, and in other documents the Company has filed, or will file, with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and the Company assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.
1606 Contact
Austen Lambrecht
CEO, 1606 Corp.
austen@1606corp.com
cbdw.ai
Sources:
- Mordor Intelligence – Captive Power Plant Market Report
- Grand View Research – Data Center Power Market Size & Trends
- S&P Global – Data Center Grid Power Demand Forecast
- Deloitte Insights – GenAI Power Consumption and Sustainable Data Centers
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/328d609e-169e-4974-bb99-621b788e6874
