NUAI

• Project Development Milestones at TCDC

  • Received all required construction permits from Ector County, including the development structure permit and driveway approach permit, and secured approval to commence site grading; site preparation work, including removal of 22 abandoned oil and gas pipelines, is complete, with construction crews expected to begin grading and erosion control in the coming weeks.
  • Full ownership of the 492-acre TCDC site in Ector County, Texas is now secured, including the recently closed acquisition of a critical 54-acre corridor that optimizes site layout and power access; less than half of the total acreage is required for the first two phases of development.
  • Phase 1 (207 MW) uses existing behind-the-meter islanded gas generation from adjacent assets, requiring no ERCOT interconnection or new on-site air permit; the company is currently finalizing a power purchase agreement (PPA) for Phase 1 in its own name, which further de-risks the project.
  • Phase 2 has been upsized from 450 MW to 550 MW (for a total of 757 MW across Phases 1 and 2) due to more efficient generation equipment that allows higher capacity within the existing emissions ceiling; project partner Thunderhead Energy Solutions has filed a standard air permit for Phase 2, and turbines are already on order.
  • Only one final surface waiver from a leasehold operator remains pending, with all terms already agreed in principle.

• Strategic Alignment with Texas Regulatory Guidance

  • The company publicly supports Governor Abbott's new directive for enhanced oversight of Texas data center development, which requires greater transparency and additional in-state power generation to avoid burdening Texas residents and the existing grid; TCDC was designed to meet these standards long before the directive was issued.
  • TCDC's behind-the-meter islanded generation model means the project does not compete for constrained ERCOT grid capacity, supplements Texas power supply, and is not subject to delayed ERCOT Batch Zero interconnection processes.
  • The project uses closed-loop cooling and prioritizes reclaimed and produced water from the Permian Basin, minimizing freshwater consumption and avoiding strain on local water supplies.

• Executive and Team Expansion

  • The company has significantly expanded its leadership team with experienced industry executives from hyperscale data center and energy infrastructure firms, including new COO Jose Rodriguez, Chief Development Officer Evan Pierce, General Counsel Michael Johnson, and an expanded role for Ted Warner as President and CFO. All new leaders have direct experience delivering large-scale data center projects, strengthening the company's execution capabilities.

• Capital Structure and Discipline

  • The company ended Q2 2026 with $84.8 million in cash (an increase from the prior quarter driven by warrant exercises) and $270 million undrawn from the Macquarie facility, which is structured to release tranches of capital as key milestones are hit; existing liquidity fully covers the expected Phase 1 equity contribution and multiple years of operating burn at current levels.
  • Large-scale project capital for TCDC will be raised at the asset joint venture level after lease execution, targeting a roughly 80% debt structure; the company will not fund large multi-billion dollar capital expenditures at the parent level.
  • While the expanded team has built a pipeline of future development opportunities, management remains focused on executing TCDC first and will only pursue additional opportunities that are non-dilutive, require minimal near-term capital, and do not compete with TCDC for resources.

• The company reaffirms its target timeline for commercial operation of TCDC Phase 1 in the fourth quarter of 2027, with permitting now complete and power secured to support this schedule.
• The TCDC site remains master-planned to scale to a total of 1.4 GW of capacity across future phases after the completion of Phases 1 and 2.
• Management expects the standard air permit for Phase 2 to complete an expedited 1-2 month review process, far shorter than the 18-month timeline for major source permits.

New Era is currently in the pre-operational development phase for its flagship data center project, the Texas Cloud Data Campus (TCDC), and has not yet generated revenue from commercial operations. As of quarter end, the company held $84.8 million in cash, cash equivalents, and restricted cash, with $270 million undrawn from its staged $290 million Macquarie project facility. No operating segment financial performance or revenue contribution percentages are reported for this quarter.

• While most permitting and land milestones are complete, one final surface waiver from a leasehold operator is still pending, though all terms have been agreed in principle.
• Finalization of the Phase 1 PPA is still subject to counterparty approvals, with no set closing date provided.
• Competing data center projects reliant on ERCOT Batch Zero interconnection face significant timing and approval uncertainty, which creates market uncertainty but also benefits TCDC due to its already de-risked power position.
• Data center development across Texas faces growing local opposition over concerns around power and water usage, though management notes no organized opposition to TCDC to date due to its project design and proactive community engagement.
• Large-scale data center development is capital intensive, and the company relies on milestone-based tranched financing and future asset-level capital raising to fund full project completion.

Q: What is the status and timing of the Phase 1 PPA, and have additional tenants or partners expressed interest in the site beyond the original hyperscaler prospect? / A: The PPA contract is materially drafted and agreed, with only final counterparty approvals remaining. The company has received interest from nearly all major potential tenants, as TCDC's design already meets the requirements of Governor Abbott's new directive, making it particularly attractive. The company still intends to move forward with the original prospect it has worked with for the past four months. (217 characters)

Q: Why is TCDC not exposed to ERCOT Batch Zero delays, and what is the strategic value of its power model? / A: Governor Abbott's directive and the Batch Zero process address new data center load that draws from the public ERCOT grid. TCDC uses either existing adjacent generation or new on-site behind-the-meter generation, so it never entered the interconnection queue and is not subject to Batch Zero reviews. Its water model also aligns with regulatory concerns, as it uses reclaimed Permian produced water rather than drawing on local freshwater supplies. (337 characters)

Q: Can the Phase 1 4Q 2027 commercial operation target still be met, and how much capital will the company spend on pre-lease development? / A: The 4Q 2027 target remains the company's goal, enabled by completed permitting and secured power. Long lead items for the project have already been procured by partners, so no major additional pre-lease capital expenditures are expected. The company will spend responsibly to keep the project on timeline, with a natural upper bound on spending before final lease execution and full investment decision. (319 characters)

Q: How does Governor Abbott's directive affect competing projects and tenant demand for TCDC's capacity? / A: There is significant uncertainty around the approval and timing of competing projects that rely on Batch Zero grid interconnection. TCDC has full clarity on its power position and timeline, which makes it far more attractive to tenants that need certainty on delivery timing, increasing expected demand for the project's capacity. (216 characters)

Q: What is the company's growth strategy beyond TCDC? / A: Management plans to pursue two core growth verticals after TCDC: smaller-scale (100 MW and under) inference data centers, which can deliver net operating income more quickly, and additional large-scale greenfield data centers that follow TCDC's bring-your-own behind-the-meter generation blueprint. Future opportunities will be developed by New Era independently, though the company would partner with Stream again if it makes strategic sense. (283 characters)