AI Infrastructure Play Rockets After Signing Deal to Be Taken Over by Global Power Operator

2025-11-18 13:43:00 ET

As artificial intelligence accelerates into the next phase of growth, a new challenge is emerging across the technology landscape: power. Data centers, whether supporting cloud computing, machine learning, or high-performance inference workloads, are running into energy shortages as utilities struggle to meet explosive demand. Companies capable of securing captive, high-quality power supply for digital infrastructure are increasingly being viewed not as optional participants, but as foundational parts of the AI economy.

Shares of 1606 Corp. ( OTCID: CBDW ) are surging Tuesday after the company announced it has signed a Term Sheet to be acquired by Sim Agro Inc., a privately held global power-generation and energy-infrastructure operator. The transaction would give Sim Agro a public-company platform under the CBDW ticker and position the combined entity to supply captive energy and purpose-built data-center capacity for AI operators.

According to the announcement, Sim Agro holds a first right of refusal to acquire a data-center-ready warehouse and power plant, along with more than 100 acres of additional land pending funding. The company intends to develop and operate dedicated power-generation assets specifically engineered to meet the high-density, uninterrupted energy requirements of modern AI workloads. Once the deal closes, Sim Agro plans to construct data-center facilities in partnership with existing industry collaborators, creating a full-stack infrastructure solution spanning both power and compute.

1606 Corp. CEO Austen Lambrecht called the transaction a transformative step, noting that power quality is now one of the most critical constraints on data-center expansion. “As demand for cloud services, AI, and digital infrastructure grows exponentially, the need for high-quality, uninterrupted energy has never been more important,” Lambrecht said. He added that Sim Agro’s operational background in building and running power plants worldwide positions the combined entity to meet the sector’s rapidly rising energy requirements. Following the acquisition, 1606 Corp. intends to pursue an uplisting to a senior exchange.

Sim Agro President Dr. Karthik Raghavan emphasized that acquiring 1606 gives the energy-infrastructure company a public-market vehicle through which to raise capital and scale captive-power development. He noted that globally, the company’s team has decades of experience developing and operating power assets across the U.S., India, Europe, South Korea, and the Middle East. Sim Agro believes that captive power—combined with grid backup—offers a more reliable, less controversial path to supporting AI growth compared to tapping strained local utilities.

The Term Sheet lays out a framework for Sim Agro to acquire a controlling interest in 1606 Corp., subject to due diligence, regulatory approvals, and final definitive agreements. The transaction is expected to close in the coming months. Once completed, Sim Agro plans to move aggressively into the development of power-generation assets tailored for AI, alongside the construction of modern data-center infrastructure designed for computationally intensive applications.

1606 Corp.’s leadership includes industry veterans with decades of experience across enterprise software, cloud infrastructure, and AI development. Directors Gowri Shankar and Venu Aravamudan bring backgrounds leading major initiatives at Oracle, AWS, F5 Networks, VMware, Microsoft, and several high-growth technology companies. Under Lambrecht’s leadership, 1606 has launched AI chatbot programs and maintained full reporting compliance as a public issuer.

The vision for the combined operation is clear: build a scalable platform capable of powering the next generation of AI systems with consistent, captive energy while constructing data-center capacity robust enough to support global digital expansion.

Shares of CBDW are up 83.3% at $0.0022 in Tuesday trading.

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