Jericho Energy Ventures, a Canadian energy company, and Comstock Holding, a prominent real estate developer, have announced a joint venture aimed at building AI data center campuses across Oklahoma. The collaboration seeks to combine Jericho's energy infrastructure expertise with Comstock's real estate capabilities to support the development of large-scale, cutting-edge facilities in the state.
The partnership was formalized through a non-binding Letter of Intent, outlining the integration of Jericho's subsurface energy infrastructure with Comstock’s surface real estate assets. As part of this agreement, Comstock will invest $1.5 million in Jericho through a non-brokered private placement. This investment remains subject to regulatory approval from the TSX Venture Exchange.
The financing package consists of 25,684,932 units priced at CAD$0.08 (US$0.059) per unit. Each unit includes one variable voting share and one-half of a warrant, with each full warrant exercisable at CAD$0.20 (US$0.15) over a 24-month period. Additionally, Jericho may issue up to an extra 20 million units under the same terms, depending on investor demand. Proceeds from this financing will be used to advance Jericho's flagship AI data center campus in Oklahoma and for general working capital purposes.
Jericho Energy Ventures CEO Brian Williamson emphasized the value of the partnership, stating: "We are pleased to welcome Comstock, a leading real estate investor and developer, as a major shareholder and strategic partner of JEV. Their investment validates the quality of our energy assets and our strategy to develop premier AI data center campuses integrated within our robust Oklahoma energy infrastructure. This partnership strengthens our platform and positions the Company well for its next phase of growth."
In addition to its initial investment, Comstock is expected to contribute an additional $6 million to the joint venture and retain the option to participate in future Jericho financings. Furthermore, Comstock CEO Chris Clemente is anticipated to join Jericho’s board of directors as part of the agreement.
Chris Clemente expressed enthusiasm about the collaboration, stating: "We are excited to collaborate with Brian Williamson and the Jericho team. Comstock and Jericho will be focused on accelerating the planning of a world-class AI data center campus and master plan on land indirectly controlled by Jericho, thereby creating significant value for all stakeholders."
Founded in 2010 and based in Vancouver, British Columbia, Jericho Energy Ventures has consistently expanded its portfolio across the energy sector. The company’s endeavors include Hydrogen Technologies, which is developing a zero-emission boiler, and Etna Solutions, a provider of alkaline-based electrolyzer systems. Last March, Jericho launched a modular data center business designed to leverage its natural gas assets for AI-specific modular data centers.
This latest joint venture with Comstock represents a significant step forward in Jericho's strategy to integrate energy and technology, with a focus on premier AI data center development in Oklahoma. Both companies aim to capitalize on Jericho's existing energy resources and Comstock's real estate expertise to create cutting-edge infrastructure in the region.
The collaboration positions both companies to play a key role in the evolving AI and data center landscape. By combining resources and expertise, Jericho and Comstock plan to deliver state-of-the-art facilities that meet the growing demand for robust, energy-efficient AI data center solutions.
