Empery backs powered data centre developer

Data Center Dynamics reported that Empery Digital invested $20 million in Cardinal Data Power, a powered data centre developer targeting AI and high-performance computing campuses in the United States.

transaction leaves Nasdaq-listed Empery with roughly an 8 percent CDP holding and is part of a $70 million Series A financing led by Hood River Capital Management, according to CDP.

According to the SEC filing cited by the outlet, the parties signed and completed the deal on July 20.

West Texas campus sets the scale marker

CDP said the new funding will support its first data centre campus in West Texas, where the company has a letter of intent for a 750MW first phase.

The planned site spans more than 3,500 acres, and CDP expects initial power delivery in 2027.

The same project roadmap puts the site at approximately 1GW of gross capacity in 2029 and says the campus could expand beyond 5GW over time.

That scale places the investment in the larger race to pair AI compute campuses with secured power, land and gas infrastructure before customer demand is fully contracted.

Behind-the-meter model drives the pitch

CDP describes its business as building data centre campuses where power is supplied on site for AI and high-performance computing tenants.

The company's cited model brings together generation equipment, natural gas supply, pipeline access, electrical works and large land positions.

Through an independent power producer, CDP has arranged access to reciprocating-engine generation equipment and related services from a manufacturer that was not named.

Powered data centre developers are therefore competing not only on buildings and land, but on whether they can package generation, transmission and operational power management for AI tenants.

Hunt relationship extends the investment thesis

Empery co-CEO Ryan Lane said in the reported statement that Cardinal Data Power is positioned to bring generation, transmission and power-management solutions to AI infrastructure demand.

Lane also said the investment reflects the strength of Empery's partnership with Hunt Properties and the opportunities that relationship is generating for shareholders.

The developer traces its ownership base to two Hunt family offices: Cavallo Holdings for the Lyda Hunt Allred family and Stratford Bridge Holdings for the Barbara Crow Hunt family.

The Hunt Properties-linked company is also pursuing large projects in West Texas and West Virginia, according to the account.

Data Center Dynamics reported that Empery's related June transaction put $65 million into a Hunt Properties-managed private entity for a 25 percent interest.

That entity is targeting a U.S. Midwest industrial site with 150MW of power intensity for conversion into an AI data centre, and the property was reported as capable of expanding to around 300MW.

Empery said a Hunt affiliate has a non-binding triple-net lease letter with a compute provider that has not been named.

If the site expands, the proposed lease could deliver as much as $1 billion in payments, but the main evidence gap is still customer conversion: both the West Texas and Midwest projects point to very large power targets, while the public record names neither the compute tenant nor final binding offtake for the new CDP campus.