New West Data Corp. said it has signed a letter of intent to acquire Entrada Resources in a transaction that would significantly expand the company’s oil and gas production capacity while accelerating its push into off-grid high-performance computing and artificial intelligence infrastructure.
The Calgary-based company said the proposed acquisition would more than triple production to approximately 4,500 barrels of oil equivalent per day (BOE/d), up from its current 1,000 BOE/d profile. The deal would also increase New West Data’s off-grid compute power capacity from existing levels to approximately 35 megawatts (MW), supporting the company’s strategy to expand beyond bitcoin mining into high-density HPC and AI computing.
Under the proposed transaction, expected to close in the third quarter of 2026, New West Data would acquire all shares of Entrada Resources, gaining access to a concentrated portfolio of oil and gas assets near Rocky Mountain House, Alberta. The assets are expected to add roughly 3,500 BOE/d of production, including approximately 2,000 barrels per day of oil and liquids output, along with stranded natural gas resources capable of powering an additional 20 MW of off-grid digital infrastructure.
Chief Executive Sean McDonough described the acquisition as a transformational step for the company’s long-term strategy of integrating energy production with digital infrastructure development. “Acquiring these profitable assets in Central Alberta is a transformational milestone that would more than triple our production and double our off-grid power capacity,” McDonough said. He added that the transaction would help position the company to deploy AI and high-performance computing infrastructure directly at energy production sites, bypassing electricity grid constraints faced by many data centre operators.
New West Data said it plans to deploy modular power generation and data centre systems across the acquired assets within as little as nine months following closing. The company argues that using stranded natural gas directly at the wellhead creates a lower-cost energy source for compute-intensive operations while extending the economic lifespan of oil assets. The transaction remains subject to financing, regulatory approvals and shareholder approval, with Azimuth Capital Management expected to appoint two directors to New West Data’s board upon completion.