Empery Digital has invested $20 million in Cardinal Data Power, acquiring an approximately 8% ownership interest in the developer of large-scale powered data center campuses.
The preferred equity investment was signed and completed on July 20, 2026. It formed part of Cardinal Data Power’s approximately $70 million Series A financing, which was led by Hood River Capital Management and included other strategic and financial investors.
Preferred equity typically gives an investor priority over common shareholders for certain distributions or proceeds, although the specific rights attached to Empery Digital’s investment were not disclosed.
Cardinal Data Power is affiliated with Hunt Properties and develops data center campuses for artificial intelligence and high-performance computing customers. Its projects focus on behind-the-meter power generation, which can supply electricity directly to a facility rather than relying entirely on the public grid.
The company plans to combine generation equipment, natural gas supplies, pipeline capacity, electrical infrastructure and large land positions to deliver data center power on accelerated timelines.
Cardinal Data Power has entered into a letter of intent covering the first phase of a proposed 750-megawatt data center campus in West Texas. The prospective tenant was not identified, and the letter of intent has not yet been converted into a binding lease.
The West Texas property includes access to more than 3,500 acres. Cardinal Data Power expects the first phase to begin delivering power in 2027 and reach approximately one gigawatt of gross capacity by 2029.
The campus could eventually expand beyond five gigawatts. However, the timing and ultimate capacity will depend on construction, customer demand, power infrastructure, permitting and the execution of definitive commercial agreements.
Cardinal Data Power has reserved reciprocating engine generation capacity and related services from a major equipment manufacturer through an agreement with an experienced independent power producer.
Reciprocating engines can generate electricity by burning natural gas and may be deployed faster than some traditional large-scale power plants. Their modular design can also allow capacity to be added as data center demand grows.
The West Texas campus is the first project in Cardinal Data Power’s development pipeline. The company is also advancing several other large-scale opportunities, including projects in West Virginia.
Cardinal Data Power was founded by the Lyda Hunt Allred and Barbara Crow Hunt families and their family offices, Cavallo Holdings and Stratford Bridge Holdings.
Empery Digital said the transaction expands its strategic relationship with Hunt Properties and provides exposure to data center and energy infrastructure opportunities supported by hyperscale computing demand.
The public company uses a bitcoin treasury strategy but is broadening its investment focus to include AI infrastructure and data centers. Empery Digital is seeking opportunities at the intersection of energy, digital assets and next-generation computing.
Its investment thesis depends partly on growing electricity demand from AI model training, cloud computing and other high-performance workloads.
The investment also exposes Empery Digital to risks involving data center construction, power availability, customer concentration and the possibility that the West Texas letter of intent may not become a definitive lease.
KEY QUOTES:
“Cardinal Data Power is uniquely positioned to bring generation, transmission and management of power solutions to the insatiable energy demands of the AI infrastructure build-out.”
“This investment reflects the continued strength of our partnership with Hunt Properties and the differentiated investment opportunities this relationship is generating for Empery Digital shareholders.”
Ryan Lane, Co-CEO of Empery Digital
“We are pleased to welcome Empery Digital as an investor in Cardinal Data Power.”
“CDP is excited to begin development of initial projects and look forward to partnering with Empery as we continue to scale.”
Hunt Allred, Chairman of Cardinal Data Power
