Comstock, Jericho Form JV for Oklahoma Data Centers
Comstock Holding Companies, Inc., through its subsidiary CHCI Oklahoma Ventures LLC, has formed Oklahoma AI Ventures LLC, a joint venture with Jericho Energy Ventures Inc.'s affiliate, Eagle Road Oil, LLC. The Joint Venture, with each party holding a 50% interest, is established to assemble, entitle, and develop contiguous land in Pawnee and Noble Counties, Oklahoma, for large-scale artificial intelligence and data center campuses. Comstock will contribute initial capital and commit to further funding up to $6,000,000, with an option for an additional $5,000,000 for predevelopment, while Jericho's affiliate contributed assets valued at $10,000,000, including energy infrastructure and land options. This strategic partnership leverages Jericho's energy assets and Comstock's development expertise to meet the high demand from AI hyperscalers for powered land.
Key Highlights
- Comstock's subsidiary, CHCI Oklahoma, and Jericho's affiliate, Eagle Road, formed Oklahoma AI Ventures LLC.
- The Joint Venture aims to develop large-scale AI and data center campuses in Pawnee and Noble Counties, Oklahoma.
- CHCI Oklahoma and Eagle Road each hold a 50% membership interest in the Joint Venture.
- CHCI Oklahoma will contribute $250,000 initially, $2,500,000 to Jericho for services, and commit up to an additional $5,750,000.
- CHCI Oklahoma may elect to contribute up to an additional $5,000,000 for predevelopment.
- Jericho's affiliate contributed assets valued at $10,000,000, including oil/gas leases and 60 miles of pipeline.
- Distributions will include an 8.00% preferred return on capital, followed by a 50/50 split of remaining proceeds.
- The JV secured development options for over 4,000 acres and plans for one of Oklahoma's largest data center campuses.
Price Impact
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