Olenox Industries Closes CS Digital Acquisition to Launch Off-Grid, Gas-Powered Data Center Platform
Olenox Industries acquires CS Digital Ventures to develop off-grid, gas-powered data centers with power costs under $0.02 per kWh, targeting AI and high-performance compute workloads.
Olenox Industries (NASDAQ: OLOX) has closed its acquisition of CS Digital Ventures LLC, launching an energy-led digital infrastructure platform designed to convert low-cost natural gas into compute at the point of generation, according to a press release. The transaction positions the combined entity to address the growing energy demands of artificial intelligence and other high-performance computing applications by building off-grid, gas-powered data centers with all-in power costs below $0.02 per kilowatt-hour.
The acquisition included $30 million in upfront consideration, comprising $14 million in Series D Preferred Stock and a $16 million unsecured promissory note, along with warrants to acquire 1.5 million shares of Olenox common stock. There is also potential for an additional $20 million in milestone-based preferred stock consideration. CS Digital brings approximately 35 megawatts of installed operating power capacity, projected 2025 revenue of $20.6 million, and projected 2025 EBITDA of $6.2 million.
The combined platform pairs Olenox's upstream natural gas position, midstream capabilities, and proprietary processing technology with CS Digital's expertise in operating institutional-scale, energy-intensive data centers. This vertical integration allows the company to bypass traditional grid infrastructure, reducing power costs and enabling faster deployment of compute capacity. The development is significant because it directly addresses the bottleneck of energy availability for AI workloads, which require massive and reliable power sources that the existing grid may struggle to supply.
Olenox Industries is a vertically integrated energy company operating across oil and gas, energy services, and energy technologies. The company is focused on acquiring, optimizing, and scaling energy-related infrastructure and operating assets across key U.S. markets. The acquisition of CS Digital marks a strategic pivot into the digital infrastructure space, leveraging its energy assets to power next-generation computing.
By locating data centers at the source of natural gas production, Olenox eliminates transmission costs and reduces carbon footprint compared to traditional grid-powered facilities. This model could serve as a template for other energy companies looking to participate in the AI boom without relying on strained electrical grids. The off-grid approach also offers data security and latency advantages for certain applications, as compute resources are physically close to energy production.
The full press release is available at https://ibn.fm/OcULR. For the latest news and updates on Olenox Industries, visit the company's newsroom at https://ibn.fm/OLOX.