Zone Frontier Inc. (NYSE American: ZONE) has entered into a definitive Ground Lease Agreement covering approximately 4,077 acres in Potter County, Texas. The lease, executed on September 24, 2026, by a subsidiary of Zone Frontier, secures land, water, and development rights for the company’s West Texas data center campus. The facility is being developed in partnership with HST Technologies, Inc., an AI infrastructure platform provider.
The lease allows Zone Frontier to designate between 200 and 800 acres for data center facilities and at least 1,800 acres for solar generation, battery storage, and supporting infrastructure. The property surrounds an existing 345 kV substation owned by Southwestern Public Service Company (an Xcel Energy company), which the company believes provides a path to grid interconnection.
Key financial and operational terms of the agreement include:
- Term: An initial term of 30 years with two 10-year extension options.
- Rent: Base rent is $6,000 per acre per year for the data center site and $1,000 per acre per year for the solar site. Rent for each area begins only upon the start of construction.
- Revenue Share: The company will pay the landlord a 0.5% revenue share on data center revenue, which is eliminated upon exercising a purchase option.
- Purchase Option: Zone Frontier has the option to purchase the data center site area for $100,000 per acre before the commercial operation date of on-site power generation, or $135,000 per acre after that date.
- Conditions: The lease is subject to conditions precedent including receipt of acceptable title, utility commitments for at least 200 MW of firm service, water supply commitments, and an interconnection agreement.
The company plans to begin construction after securing a tenant. The initial capacity of the campus is sized for 200 MW, with potential to expand beyond 500 MW. The lease also includes a long-term water supply agreement co-terminous with the lease term.
