Zone Frontier Inc., a company developing AI infrastructure including data center campuses, has announced that a subsidiary has entered into a long-term ground lease covering 4,077 acres in Potter County, Texas. The lease secures the land, water, and development rights for Zone Frontier’s West Texas data center being developed in partnership with HST Technologies, Inc.
The lease stipulates that Zone may designate between 200 and 800 acres of the land for data center facilities and related infrastructure. According to a press release, at least 1,800 acres can be used for solar generation, battery storage, and supporting infrastructure.
“This agreement gives Zone what matters most in AI infrastructure: land at scale, a faster path to power, and water, all secured under one long-term agreement with tremendous option value,” said Tyler Hassen, Zone Frontier Chief Executive Officer. “The attractive lease structure allows us to advance tenant acquisition, power and permitting work in a disciplined sequence, without committing any significant capital before the key pieces are in place. We appreciate working with the landowner and local community, and look forward to building a flagship campus in the Texas Panhandle. With this campus, we’ll continue to invest in the local tax base, hiring, and the community more broadly.”
The campus will have an initial capacity of 200 MW with potential to expand beyond 500 MW. For power, the property surrounds Southwestern Public Service Company’s 345 kV Potter County substation, which the company believes will provide a path to grid interconnection alongside the on-site generation. The land is also in close proximity to two natural gas pipelines.
The lease has an initial term of 30 years with two 10-year extension options. Base rent for each site area is due once construction begins on the area, aligning land costs with development milestones. Zone Frontier also has the option to purchase the data center site, subject to certain conditions including a long-term water supply agreement, coterminous with the lease, drawing on the water rights appurtenant to the property.
“We are now focused on securing tenants, advancing permitting, and completing power and interconnection studies for the site,” said Hassen. “As tenant discussions progress, we will concurrently evaluate financing options with both co-investment equity partners and project finance lenders. We are also focused on ensuring this project delivers lasting benefits for the local community.”
The West Texas campus joins Zone Frontier’s portfolio, which includes a data center campus in Minnesota. Cerebras Systems Inc. has an initial 10-year Colocation Services Agreement with Zone and two 10-year potential extension options. There has been material construction progress, and Zone expects to generate revenue from the Minnesota facility in the first half of 2027.