Valor Energy To Acquire 18MW Operational Computing Center In Ohio For $3.6M

Valor Energy Inc. (NASDAQ:VAI) ("Valor Energy" or the "Company") today announced that it has entered into an agreement to acquire all of the outstanding equity interests of the company that holds an 18MW operational computing center in Youngstown, Ohio (the "Youngstown Project"). The acquisition remains subject to due diligence and other closing conditions described below, and there can be no assurance that it will be completed on the terms described or at all.

The Youngstown Project is located at 1911 Logan Avenue, Youngstown, Mahoning County, Ohio, and includes a facility of approximately 30,888 square feet. The site has approximately 18 megavolt-amperes (MVA) of apparent power capacity under an existing 23kV utility interconnection with Ohio Edison, which the Company believes is already approved and energized. This figure represents site-level apparent power capacity and does not necessarily equal usable IT load for data center operations. Construction of the existing computing center is complete; however, the Company's planned conversion of the site into an AI data center will require additional design, construction, equipment and permitting work.

Access to energized power is an important factor in AI data center development across the United States, and sites with large-scale power already in place can be difficult to secure. By acquiring an operating facility rather than undeveloped land, Valor Energy believes it may be able to shorten its timeline to deploy AI computing capacity, although the timeline for any such deployment remains subject to significant uncertainty, including completion of the acquisition, further construction and permitting, and availability of financing. Following closing, the Company plans to pursue development of the Youngstown Project into an AI data center serving AI and high-performance computing workloads.

The transaction is structured as an acquisition of 100% of the equity interests of the entity holding the Youngstown Project, for an aggregate purchase price of USD 3,600,000, subject to adjustment as provided in the agreement. The target company’s existing site, power arrangements and related contracts are expected to remain in place under the same entity following closing. Closing is subject to a due diligence period of thirty (30) business days from the agreement’s effective date and numerous other closing conditions, including third-party and regulatory consents, and is expected to occur no later than the 90th business day following the effective date, if at all. Valor Energy has the unilateral right to terminate the agreement under specified circumstances during due diligence, including if it determines the target company provided false information, in which case its good-faith deposit would be refunded. Valor Energy may complete the acquisition directly or through a designated subsidiary.