Two of Texas's most prominent real estate families are joining forces with a publicly traded digital infrastructure firm to build a data center in the Midwest, betting that the insatiable demand for cloud computing will turn an industrial site into a lucrative long-term asset.
Hunt Properties and Crow Holdings, both Dallas-based real estate dynasties with decades of experience in development and infrastructure, are teaming up with Empery Digital, a Nasdaq-listed company focused on bitcoin mining and digital assets. The group is putting $230 million into acquiring and redeveloping a 150-megawatt (MW) industrial facility in the Midwest, with plans to convert it into a data center. They are also courting an unnamed cloud computing company for a lease that could be worth up to $1 billion over its term.
Why This Site Is Attractive
The appeal of this particular property lies in what it already has: a substation and a utility agreement that can deliver about 150 MW of power. In the world of data centers, power is the most scarce and valuable resource. New electricity connections can take years to secure, especially as AI-driven demand pushes cloud providers to expand capacity at a breakneck pace. By buying a lightly used site with power already lined up, the partnership avoids the long wait times that plague many new projects.
Each partner brings a distinct strength to the table. Hunt Properties contributes expertise in power and infrastructure, Crow Holdings adds deep property development experience, and Empery Digital—a company with a market capitalization of around $100 million—provides access to public-market funding. The group has already secured a non-binding letter of intent (LOI) from a cloud computing company. If that LOI converts into a signed long-term lease, the site could expand to roughly 300 MW and serve as a template for future acquisitions.
What It Means for Investors
For everyday investors, the key question is not whether AI demand is real—it clearly is—but whether the tenant actually commits. A signed lease from a major hyperscaler (think Amazon Web Services, Microsoft Azure, or Google Cloud) would transform this speculative project into something closer to a contract-backed infrastructure asset. Predictable rent from a creditworthy tenant makes lenders more willing to provide asset-level project debt, which is typically cheaper than raising equity. That lower-cost financing improves returns for all partners and reduces dilution risk for smaller public companies like Empery Digital.
But an LOI is not a contract. Until the lease is binding, the project remains a higher-risk development. Construction cash flows are uncertain, and the funding stack often relies on more expensive bridge loans and equity. For a company with Empery Digital's relatively small market cap, that can mean higher dilution if the company needs to raise additional capital. The stock's near-term narrative will hinge on whether the LOI becomes a firm lease, because that decision largely determines whether the project can be financed efficiently and scaled into what the partners describe as "several similar purchases."
This deal also highlights a broader trend: traditional real estate developers are increasingly pivoting toward data centers as demand for office and retail space softens. The shift is being fueled by the AI boom, which has sent chip stocks surging and created a race for power and land. At the same time, the broader market has seen increased appetite for infrastructure assets, as evidenced by deals like Bridgepoint's $1.4 billion acquisition of Kayne Anderson Real Estate.
What to Watch Next
Investors should keep an eye on Empery Digital's disclosures for any update on the lease negotiations. A signed deal would likely boost the stock and open the door for more projects. Conversely, a delay or failure to convert the LOI could raise questions about the company's ability to execute on its ambitious plans.
The broader data center market remains red-hot, with cloud providers spending billions to expand capacity. But the path from a speculative build to a cash-flowing asset is not automatic. For now, this Texas trio is betting that their combined expertise—and a site with power already in hand—will give them an edge in a crowded field.
