Optimizing electrons…
Optimizing electrons…
A complete, end-to-end execution blueprint, financial model, and compliance guide for bringing behind-the-meter power — and, at full scale, an integrated AI data center campus — online in Texas. Built for investors evaluating either a fast, capital-light power play, or a larger vertically-integrated infrastructure position.
50 MW live in 6 months · ~$194M full program to 150 MW · sells power via PPA
Vertically-integrated data center + private power, gas+BESS → SMR nuclear option, $3.55B at 200 MW IT
Payzo builds and owns behind-the-meter gas+BESS generation and sells power via PPA to third-party AI data center developers. Lean, fast, capital-efficient: a $35M Series A gets 50 MW energized in 6 months, scaling to 150–200 MW over 18–24 months.
Payzo develops, owns, and operates the entire AI data center campus — shell, cooling, electrical, fiber — plus its own private power, with an explicit path from gas+BESS to SMR nuclear. Vertically integrated, project-finance scale: $1.85B at 100 MW IT, $3.55B at 200 MW IT.
Recommended sequencing if pursuing both: close the Track 1 raise now to reach revenue within 6 months; use that operating proof-point and site control to anchor a much larger Track 2 project-finance raise once the anchor customer relationship is established.
Same underlying customer problem — a power-hungry AI data center that needs energy faster than the grid can deliver it — two very different capital and execution paths.
Power generation only — Payzo builds/owns the BTM power plant and sells power via PPA to third-party AI data center developers
Vertically integrated — Payzo develops, owns and operates the entire data center campus (shell, cooling, electrical, fiber) plus its own private power generation
100–200 MW of generation capacity
100–200 MW of IT load (130–260 MW utility gross)
~$194M (150 MW planning case); ~$260–270M at 200 MW
$1.85B (Phase 1, 100 MW) → $3.55B (Phase 2, 200 MW)
$35M Series A (equity)
35% sponsor equity of total facility CapEx (~$650M at Phase 1 scale), balanced by 65% senior project debt
6 months (Fast-Track, 50 MW)
~30 months to initial 100 MW grid-powered ramp; 42–48 months to hybrid SMR/grid at full scale
18–24 months to 150–200 MW
48–72 months if SMR nuclear is on the critical path; ~30–36 months if gas+BESS only
Gas reciprocating engines + BESS only
Gas + BESS (Phase 1), with an explicit option to add SMR nuclear (Phase 2+)
Texas PUCT/ERCOT (SB 6), TCEQ air permitting, Texas Energy Fund
All of Track 1's exposure, plus NRC licensing (10 CFR Part 52) if SMR is pursued, plus data-center zoning/entitlements
Wholesale power seller to data center developers (B2B power supply)
Direct landlord/operator to AI hyperscaler tenants (NNN capacity lease + pass-through power)
PPA revenue, ~$9M/MW/year company-projected
NNN wholesale capacity lease at $130–140/kW-month plus pass-through energy costs
You want to move fast, minimize capital at risk, and prove the model with one anchor customer first
You have (or can raise) project-finance-scale capital and want to control the full AI infrastructure stack, including a long-term nuclear option
Payzo builds and owns behind-the-meter gas + BESS generation and sells power via PPA to third-party AI data center developers — lean, fast, and capital-efficient.
Behind-the-meter gas + BESS · Texas ERCOT
Energy Transfer / Williams pipeline tie-in + dual-fuel storage
10–50 MW modules · Caterpillar / Jenbacher · 18–24 mo deploy
Medium-voltage switchgear, transformers
Texas site with direct customer tie, avoiding ERCOT queue
20–30 MW / 4-hr duration · Fluence / Tesla · peak shaving
Direct tie to customer load — bypasses ERCOT interconnection queue
Predictive maintenance · real-time ERCOT price optimization · automated bidding
Settlement-grade metering for PPA billing
PPA offtake · $8–10M/MW/yr contracted revenue (company projection)
10–15 YEAR TAKE-OR-PAY PPA
Note: this diagram maps system components and their integration points. It is a design/planning reference, not an electrical single-line diagram — validate all interconnections with a licensed P.E. before construction.
Planning case · range 100–200 MW
Phase 1 fast-track to 50 MW energized
Phase 2 full-build to 150–200 MW
ERCOT, ~65% dominant Texas data-center corridor
$35M Series A allocation.
| Use | % | Amount |
|---|---|---|
| CapEx — Phase 1 Fast-Track Deployment (50 MW) | 45% | $15,750,000 |
| CapEx Deposits & Long-Lead — Phase 2 | 20% | $7,000,000 |
| Regulatory, Permitting & Compliance | 13% | $4,550,000 |
| Team & Operations Build-Out | 14% | $4,900,000 |
| G&A, Legal, Insurance & Contingency | 8% | $2,800,000 |
| Total | 100% | $35,000,000 |
Note: this raise funds platform development, Phase 1 deployment, and Phase 2 readiness. Full owned-asset construction CapEx for Phase 2 is intended to be funded via project debt, tax equity, and the Texas Energy Fund — not from this equity round.
150 MW planning case, Phase 1 + Phase 2.
| Line Item | MW | $/MW | Phase 1 | Phase 2 | Total |
|---|---|---|---|---|---|
| Rental/modular gas generation — mobilization, lease deposit | 30 | $400,000 | $12,000,000 | – | $12,000,000 |
| Containerized BESS — 20 MW / 80 MWh (purchased) | 20 | $1,400,000 | $28,000,000 | – | $28,000,000 |
| Site prep, civil, switchgear, BTM interconnection | 50 | $160,000 | $8,000,000 | – | $8,000,000 |
| Fast-track permitting, legal & SB 6 compliance | 50 | $80,000 | $4,000,000 | – | $4,000,000 |
| Owned gas reciprocating engine modules (+70 MW) | 70 | $700,000 | – | $49,000,000 | $49,000,000 |
| BESS expansion — 30 MW / 120 MWh (owned) | 30 | $1,330,000 | – | $39,900,000 | $39,900,000 |
| Interconnection, step-up transformers & switchyard | 100 | $120,000 | – | $12,000,000 | $12,000,000 |
| EPC, construction labor & site development | 100 | $220,000 | – | $22,000,000 | $22,000,000 |
| Permitting (Title V/NSR if triggered) & environmental | 100 | $60,000 | – | $6,000,000 | $6,000,000 |
| Contingency (10% of Phase 2 hard+soft costs) | — | — | – | $12,890,000 | $12,890,000 |
50 MW fast-track bridge power
+100 MW owned build-out
Scales to ~$260–270M at 200 MW
| Source | Amount |
|---|---|
| Series A Equity (this raise) | $35,000,000 |
| Project Debt / Tax Equity / Asset-Backed Facility | $130,000,000 |
| Texas Energy Fund — In-ERCOT Generation Loan (potential) | $70,000,000 |
| Completion Bonus Grant (potential, TxEF) | $16,000,000 |
| Series B / Follow-on Equity (Month 18–24) | $30,000,000 |
| Total | $281,000,000 |
Texas Energy Fund and Completion Bonus Grant figures are potential accelerants contingent on a competitive PUCT application, not committed capital. BESS capacity is explicitly ineligible for TxEF loans — only the gas/dispatchable portion of Phase 2 qualifies.
Operating capacity ramp and contracted ARR across a 5-year build-out.
| Year | Capacity (MW) | Ramp | Contracted ARR |
|---|---|---|---|
| Y1 | 50 | 50% | $225M |
| Y2 | 100 | 75% | $675M |
| Y3 | 150 | 90% | $1.22B |
| Y4 | 175 | 95% | $1.5B |
| Y5 | 200 | 97% | $1.75B |
$9M/MW/year is a company projection blending PPA + capacity/grid services + peak shaving + carbon credits. Treat as a management estimate pending signed PPA rate schedules.
Payzo develops, owns, and operates the entire AI data center campus — shell, cooling, electrical, fiber — plus its own private power, with an explicit path from gas + BESS to SMR nuclear.
Vertically-integrated AI data center + private power
80–120 acres · industrial-zoned · transmission access
230/500kV substation · medium-voltage switchgear · UPS systems · busways
$550M (Ph1) → $1,050M (Ph2)
Guarantees power delivery where public grid queues run 4–7 years
$450M (Ph1) → $880M (Ph2)
Direct-to-chip CDUs · secondary loops · chillers · CRAHs
$380M (Ph1) → $720M (Ph2)
120 MW gas turbines + 50 MW/200 MWh BESS + substation + dual-fuel storage
$400M · deploys in 18–24 mo
150–200 MW SMR fleet + steam turbine BOP + NRC siting/licensing + microgrid sync
$1.47B · deploys in 48–72 mo (10 CFR Part 52)
Heavy slab (>350 lb/sq ft) · clear height 24–30 ft · white space + racks
$220M (Ph1) → $410M (Ph2)
4–6 redundant diverse fiber conduits · carrier-neutral meet-me rooms
$40M (Ph1) → $70M (Ph2)
NNN wholesale capacity lease ($130–140/kW-month) + pass-through energy costs
10–15 YEAR TAKE-OR-PAY CAPACITY AGREEMENT
Note: this diagram maps system components and their integration points. It is a design/planning reference, not an electrical single-line diagram or NRC-submittal drawing — validate with a licensed P.E. and nuclear architect-engineer before construction.
130 MW utility gross · 1.15 PUE
260 MW utility gross · 1.12 PUE
NNN capacity off-take, Phase 1 (falls to $130 at Phase 2 scale)
Senior project debt / sponsor equity · 6.5% interest
Phase 1 (100 MW IT) vs. Phase 2 (200 MW IT).
| Line Item | Phase 1 | Phase 2 |
|---|---|---|
| 1.0 Site & Land Acquisition | $25,000,000 | $35,000,000 |
| 2.0 Civil, Shell & Core | $220,000,000 | $410,000,000 |
| 3.0 Electrical Power Train | $550,000,000 | $1,050,000,000 |
| 4.0 Mechanical & Liquid Cooling | $380,000,000 | $720,000,000 |
| 5.0 On-Site Private Energy Generation | $450,000,000 | $880,000,000 |
| 6.0 Fiber & Network Connectivity | $40,000,000 | $70,000,000 |
| 7.0 Soft Costs & Permitting | $80,000,000 | $140,000,000 |
| 8.0 Subtotal Direct CapEx | $1,745.0M | $3,305.0M |
| 8.1 Contingency | $104.7M | $244.6M |
| TOTAL FACILITY CAPEX | $1,849.7M | $3,549.6M |
~$18.5M / MW (IT)
~$17.7M / MW (IT)
$150K–$250K / acre, industrial-zoned
| Line | Phase 1 | Phase 2 |
|---|---|---|
| REVENUE | ||
| Wholesale Capacity Revenue (NNN Lease) | $168,000,000 | $312,000,000 |
| Electricity/Fuel Expense Pass-Through | $105,000,000 | $198,000,000 |
| TOTAL GROSS REVENUE | $273,000,000 | $510,000,000 |
| OPERATING EXPENSES | ||
| Direct Fuel & Energy Generation Cost | $105,000,000 | $198,000,000 |
| Electrical & Mechanical Equipment Maintenance | $18,600,000 | $35,400,000 |
| Power Plant & SMR O&M | $14,000,000 | $24,000,000 |
| Mission Critical Data Center Staffing | $12,000,000 | $21,000,000 |
| Property Taxes & Municipal Assessments | $18,497,000 | $35,495,700 |
| Insurance (Property, Casualty & Interruption) | $9,500,000 | $17,500,000 |
| Legal, NRC Oversight & Regulatory Compliance | $3,500,000 | $6,500,000 |
| General Operating Contingency Buffer | $4,000,000 | $8,000,000 |
| TOTAL ANNUAL OPEX | $185,097,000 | $345,895,700 |
| EBITDA | $87,903,000 | $164,104,300 |
| Senior Debt Interest Expense | $78,149,825 | $149,969,333 |
| NET OPERATING CASH FLOW (Pre-Tax) | $9,753,175 | $14,134,968 |
| Implied DSCR (target: 1.35x) | 1.12x | 1.09x |
Triple-Net (NNN) structure: AI tenant reimburses pass-through fuel/electricity cost; operator retains capacity lease margin.
Financing risk flag: at the stated 65% debt / 6.5% interest structure, implied DSCR comes out to ~1.09–1.12x — below the 1.35x minimum covenant target in both phases. This is a genuine model output, not a data-entry error. Closing this gap requires some combination of: higher sponsor equity (lower leverage), a lower-cost debt facility, a higher contracted lease rate, or lower OpEx — work this through with a project-finance advisor before approaching lenders.
Private BTM generation guarantees power delivery where public grid queues extend 4–7 years. This choice drives Line 5.0 of the CapEx table above.
120 MW gas turbines ($180M) + 50 MW/200 MWh BESS ($120M) + substation/switchyard ($70M) + dual-fuel storage ($30M)
Deployment: 18–24 months. Regulatory: TCEQ air permit + ERCOT/RTO interconnection. Best for: immediate power delivery, de-risking the anchor PPA.
150–200 MW SMR fleet ($1.15B, Westinghouse AP300/Oklo/NuScale/TerraPower class) + steam turbine BOP ($180M) + NRC siting/licensing ($80M) + microgrid sync ($60M)
Deployment: 48–72 months — 10 CFR Part 52 licensing is the long pole. Best for: long-term firm, carbon-free baseload once Phase 1 proves the site.
Civil / shell / grid-interconnect run in parallel with SMR permitting. Grid-powered Phase 1 ramp at Month 30; hybrid SMR/grid at Month 42; full 200 MW by Month 48.
10 CFR Part 52 — Combined License process.
| Phase | Milestone | Duration | Deliverables |
|---|---|---|---|
| Phase 1 | Pre-Application Engagement & Site Characterization | Month 1–12 | File Regulatory Engagement Plan; 12-month environmental monitoring (10 CFR Part 100); establish Plant Parameter Envelope (PPE) |
| Phase 2 | Application Submission & Docketing Review | Month 12–18 | File FSAR, Environmental Report, Emergency Plan; NRC 60-day sufficiency review; submit Limited Work Authorization (10 CFR 50.10) |
| Phase 3 | NRC Technical & Environmental Review (SER & FEIS) | Month 18–42 | RAIs; draft/final Safety Evaluation Report; Final EIS (NEPA); ACRS independent safety review |
| Phase 4 | Mandatory Hearing & License Issuance | Month 42–50 | ASLB mandatory hearing; NRC Commission vote; Combined License (COLA) granted |
| Phase 5 | Construction, LWA & ITAAC Verification | Month 48–70 | Non-safety civil grading; safety-related nuclear island construction; periodic ITAAC filings (10 CFR 52.99) |
| Phase 6 | 10 CFR 52.103(g) Finding & Fuel Load | Month 70–72 | NRC confirms ITAAC criteria met; fuel load authorized; commercial microgrid power delivery begins |
Applies to both tracks unless noted. Items flagged high carry 6-month critical-path risk.
Current flag (Aug 4–5, 2026): Gov. Abbott ordered a full audit of the ERCOT large-load interconnection queue and signaled possible denial of grid access for some data center projects amid ~475 GW of pending large-load requests (90%+ data centers). This materially raises the value of a behind-the-meter, non-grid-export design — as modeled in Track 1 — over a grid-interconnected path. Monitor PUCT Projects 56545 / 58480 / 58481 for final SB 6 rule adoption (statutory deadline: Dec 31, 2026).
| Agency | Requirement | Est. Cost | Risk | Who Can Help Expedite |
|---|---|---|---|---|
| TX Secretary of State / Comptroller | Foreign entity registration, franchise tax registration, sales/use tax permit | $15,000 | low | — |
| PUCT / ERCOT — SB 6 Large-Load Rules | Site-control documentation, flat screening study fee (≥$100,000), BTM generation disclosure, curtailment-protocol compliance (16 TAC §25.370; draft §25.194 pending) | $250,000 | high | Baker Botts, McGuireWoods, Mayer Brown, Foley & Lardner, Greenberg Traurig, Weil Gotshal |
| PUCT / ERCOT — Interconnection | Standard/Small Generator Interconnection Agreement if grid-tied; NERC/Texas RE registration if ≥20 MVA | $400,000 | high | Former ERCOT interconnection engineers / specialist consultants |
| TCEQ — Air Quality | Permit by Rule (30 TAC §106.512, ~45–60 days) OR NSR/Title V if major-source thresholds triggered at full scale | $550,000 | high | Environmental/air-permitting consultancies — procure via RFP |
| TCEQ — Water & Spill Prevention | TPDES stormwater general permit, wastewater discharge permit if applicable, SPCC plan | $90,000 | medium | Same environmental consultancy as air permitting |
| Railroad Commission of Texas | Applies only if building owned gas gathering/lateral pipeline | – | low | Energy Transfer / Williams Companies commercial teams |
| EPA — Clean Air Act | NSPS Subpart JJJJ/IIII stationary engine standards; Title V overlay if major source | $120,000 | medium | Same environmental consultancy; federal environmental counsel |
| FERC | Only if grid export / wholesale market participation; not required for pure BTM direct-serve | – | low | Energy regulatory counsel |
| Texas Energy Fund (PUCT) | In-ERCOT Generation Loan application (≥100 MW new dispatchable, up to 60% of cost at 3%/20-yr) + Completion Bonus Grant | $300,000 | medium | PUCT-experienced financial/technical advisors |
| Local (County/City) | Building & electrical permits, fire marshal review, road-use permits, zoning | $60,000 | low | Local permitting expediters; favor unincorporated West Texas counties |
| Total estimated 6-month compliance cost (Track 1 scope) | $1,835,000 | |||
(Payzo-owned components)
Both tracks share this exact flow. Track 2 additionally runs Generation through the Option A/Option B fork (Gas+BESS vs. SMR) shown in the Track 2 section above.
Boxes without a track label apply to both tracks. Track 2 boxes (right two columns in each lane) only activate if the decision gate (Month 6-12) selects the Full Campus Developer path.
Vertical alignment across lanes at a given month = work happening in parallel, not sequentially — this is the core "parallel path" execution principle for both tracks.
| Risk | Detail | Mitigation | Track |
|---|---|---|---|
| TCEQ air permitting timeline | Single biggest risk to the 6-month Track 1 target; NSR/Title V review can run 6–12+ months if major-source thresholds are crossed | Keep Phase 1 rental fleet sized under Permit-by-Rule thresholds; parallel-track permitting across sites | Both |
| SB 6 rulemaking still finalizing | PUCT rules on large-load co-location (§25.194) are still in draft as of mid-2026 | Engage regulatory counsel early; monitor PUCT Projects 56545/58480/58481; design for compliance with the draft rule now | Both |
| ERCOT interconnection queue / grid access | Gov. Abbott's Aug 2026 audit signals possible denial of grid access for some large-load projects | Behind-the-meter, non-grid-export design avoids the queue entirely | Both |
| Gas price volatility | Henry Hub price swings affect margins on the fuel pass-through / PPA spread | Long-term supply agreements with fixed differentials; pass-through clauses in PPAs | Track 1 |
| Equipment supply chain | Reciprocating engine and transformer lead times of 9–18 months | Rental/modular bridge power for Phase 1; pre-ordered deposits for Phase 2 | Both |
| DSCR shortfall at modeled leverage | Track 2 P&L implies ~1.09–1.12x DSCR vs a 1.35x covenant target at 65/35 debt/equity | Increase equity share, negotiate lower-cost debt, or improve lease-rate/opex assumptions before approaching lenders | Track 2 |
| NRC licensing schedule risk | 10 CFR Part 52 process runs 48–72 months and is subject to RAIs, hearings, and ACRS review timing | Run SMR as a long-lead parallel track from Month 1; do not let it gate Phase 1 energization | Track 2 |
| Competition from well-funded hyperscalers | Crusoe ($10B+), Nscale, Aligned and others are building multi-GW campuses with large capital bases | Niche focus on 50–200 MW behind-the-meter avoids direct competition; partner with, not against, hyperscalers | Both |
We'll walk you through the model, the site pipeline, and what it takes to close — for Track 1, Track 2, or a sequenced path through both.