Big Digital Energy signs LOI for 17 MW AI campus in Texas
Big Digital Energy (Nasdaq: BGDE) has announced that Texas Load House, a 50/50 joint venture between Big Digital and energy-infrastructure company 10NetZero, has signed a letter of intent with Tensor IQ to co-develop an AI and high-performance computing campus in Hood County, Texas. The agreement establishes a framework for definitive contracts covering power supply, GPU infrastructure, colocation services, and long-term managed infrastructure.
The LOI envisages reserving up to 17 MW of gross power capacity for Tensor IQ at the approximately 30-acre site. Initial deployment is planned at 7,748 NVIDIA B300 GPUs, with the architecture designed to handle both AI training and inference workloads. The campus is being built in alignment with NVIDIA's system architecture guidance and the Dell AI Factory with NVIDIA platform, using direct liquid cooling in Phase 1 and immersion cooling in Phase 2. The site is currently targeted to be in service by the second quarter of 2027, subject to design completion, financing, and regulatory approvals.
The commercial terms
Based on the indicative, non-binding pricing outlined in the LOI, the arrangement is projected to generate approximately $546 million in aggregate power-lease-related revenue to Texas Load House over an initial 15-year contract term, assuming full capacity utilisation and a 3% annual escalation provision. Two further five-year extension options are contemplated; if both are exercised on equivalent pricing terms, cumulative lease revenues could reach around $1.07 billion over 25 years. The company has been explicit that these figures are preliminary estimates contingent on finalising a Design Basis Memorandum, front-end engineering and design work, financing, and definitive documentation.
Phil Stanley, chief executive of Big Digital Energy, said the LOI "marks a critical step towards advancing the Hood County project from site development to a customer-oriented AI infrastructure campus," adding that Tensor IQ's compute and commercialisation expertise complements the project's power strategy.
Market context
The Hood County announcement reflects a broader wave of AI infrastructure development across the southern United States, where relatively cheap land, available power, and a permissive regulatory environment have attracted a growing cohort of data centre developers. Several digital infrastructure operators, including established hyperscalers and smaller specialist developers, are competing intensely for GPU supply agreements with AI-focused tenants, driving up both land values and lead times for NVIDIA hardware.
Big Digital Energy also operates Bitcoin mining capacity alongside its HPC and AI colocation business, a combination that has become common among smaller infrastructure operators seeking to diversify revenue streams against volatile crypto economics. The company states it has 146 MW of capacity already online, though the Hood County project remains at the LOI stage and carries the full weight of pre-construction risk: financing has not been secured, definitive agreements have not been signed, and the company's own filings note a going-concern qualification.
Investors will watch for the conversion of this LOI into binding contracts, progress on the Design Basis Memorandum, and clarity on the financing structure, whether site-level debt, institutional equity, or a combination. The Q2 2027 target in-service date leaves limited margin for the engineering and procurement delays that have characterised comparable AI data centre projects in recent months.