Big Digital, 10NetZero Acquire Texas AI Data Center Site for $10 Million
Big Digital Energy has acquired a powered industrial site near Dallas through a joint venture with 10NetZero, advancing plans to develop as much as 300 megawatts of data center capacity for AI and high-performance computing workloads.
The venture, Texas Load House LLC, paid about $10 million in cash for 30 acres in Hood County, Texas, on July 15, according to a regulatory filing. It also obtained an option to purchase the remainder of the roughly 50-acre property for an additional $600,000.
Big Digital and energy-infrastructure company 10NetZero initially each hold a 50% interest in the venture. The site, located less than 40 miles from the Dallas-Fort Worth area, currently has 17 MW of operational power and more than 30,000 square feet of existing structures that the partners plan to repurpose for data center use.
The companies said grid capacity could be expanded in phases to as much as 111 MW, subject to validation by the Electric Reliability Council of Texas. The property also has two 12-inch natural-gas pipelines and one 20-inch pipeline, potentially allowing the venture to install behind-the-meter generation and increase the total buildout to as much as 300 MW.
Those larger capacity figures remain prospective and will depend on grid studies, engineering, financing and customer commitments.
The transaction gives Nasdaq-listed Big Digital control of an operating power asset as it seeks to expand beyond its existing digital-infrastructure business and attract AI and HPC customers. The company has hired Northland Capital Markets to evaluate potential uses for its power portfolio and site-level financing alternatives. It said it is also in discussions with prospective development partners and customers.
The joint venture’s financing structure gives Big Digital the potential to take full ownership of the project if 10NetZero does not repay money advanced for the acquisition.
Big Digital agreed to lend 10NetZero $4.9 million to fund part of the latter’s required capital contribution. The loan bears interest at the applicable federal short-term rate in effect when funded and matures on Oct. 13.
If the loan remains unpaid after maturity, 10NetZero’s stake will transfer to Big Digital at a rate of 10 percentage points per month, calculated daily. Big Digital would therefore acquire 10NetZero’s entire 50% interest if the debt remained outstanding for five months after the maturity date.
Big Digital will serve as the venture’s sole manager until the loan is repaid, although certain significant decisions require approval from both partners. If 10NetZero repays the financing in full, it will take over as sole manager under a separate interim-management agreement.
The partners plan to proceed with engineering, site planning and customer engagement for the proposed campus. The existing structures include an administrative building that is expected to serve as the development’s command center.
Texas has become a major target for AI infrastructure development because of its large energy market, natural-gas resources and extensive pipeline of former or prospective bitcoin mining sites. At the same time, securing land and announcing potential capacity are early steps in a lengthy development process, particularly as large projects face more scrutiny over grid availability, interconnection requirements and generation plans.
