New Era Helium eyes AI project in Texas - ICYMI

New Era Helium Inc (NASDAQ:NEHC) CEO Will Gray talked with Proactive about the company's latest developments in Texas, focusing on its pivot into AI infrastructure.

Gray explained that New Era Helium originally acquired 235 acres in Ector County, Texas, targeting a powered land or powered shell opportunity aimed at attracting a top-tier hyperscaler to the Permian Basin. The project centers on behind-the-meter power generation with an initial target of 250MW, with eventual plans to connect to the ERCOT grid.

Proactive: You've announced that you're going to look at expanding what you're working on in Texas with this AI data center. Let's remind everyone a little bit of what you're doing, and then we'll talk about today's news.

Will Gray: Originally we had talked about acquiring 235 acres in Ector County, Texas, for more of a powered land and or powered shell opportunity with the hyperscaler. Our goal is to bring a top-tier hyperscaler to plant their flag in the Permian Basin. It's more relevant to behind-the-meter power generation. We talked about 250MW with the eventuality of connecting to the grid with ERCOT. Our discussions with multiple global entities are progressing extremely well, and we hope to have some near-term news to share with the market.

That's what this update was for people to understand – these are complex negotiations, and you need to pick the right partner to work with. Obviously, that involves due diligence before anything is ever made public.

You hit the nail on the head. My background has been oil, gas, and helium, and we've pivoted to AI infrastructure in the Permian Basin. With our joint venture partners Sharon AI, we understand what it takes to build these data centers. It requires substantial capital — around $1.7 million per megawatt. So you're talking billions of dollars. It's not like you just have $1 million and get started. We've been very pleased with the response from various discussions. People want to enter the Permian Basin because of great energy costs. The Permian Basin is never going to be a cloud market. We're focusing on inference and AI learning models for potential customers.

You also mentioned in the news release that you're looking at adding some new board candidates as well. Interviews are happening right now as you look to shore up the board.

Absolutely. We went public December 9 via a SPAC. We feel like a phoenix rising from the ashes due to our ability for AI infrastructure in the Permian. We have a lot of optionality as a company. Pre-market trading was 60 million shares; at one point, we were up 200% this morning. I think the market is telling both our management and our board what they like. We need to respect that.

Makes a lot of sense. Well, thanks so much. Good to get an update from you. We look forward to continuing to follow the story.

Quotes have been lightly edited for style and clarity