Comstock Holding Companies Inc. (NASDAQ: CHCI) announced the formation of a joint venture with Jericho Energy Ventures Inc. (TSXV: JEV) to develop data center campuses in Oklahoma's Pawnee and Noble counties. The partnership, called Oklahoma AI Ventures LLC, formalizes a letter of intent announced earlier this year.

Under the agreement, Comstock and a Jericho affiliate each own 50% of the joint venture. Comstock will serve as administrative member and lead development efforts through a wholly-owned subsidiary. Jericho contributed approximately 18,000 acres of subsurface portfolio, energy infrastructure, natural gas access, and water resources. Comstock provided capital for initial land assemblage and committed to additional future funding subject to agreed limits and approved budgets.

The joint venture has secured development options covering more than 4,000 acres that combine Jericho's subsurface energy infrastructure with surface land interests. The partners said they are planning what would become one of the largest data center campuses in Oklahoma and continue strategic land assemblage efforts.

The Oklahoma location offers direct access to natural gas from multiple sources for on-site power generation, contiguous acreage with favorable topography, two nearby 345 kV transmission lines, multiple on-site water sources, and a regulatory environment supportive of large-load data center development.

"By combining our large-scale development proficiency with Jericho's abundance of well-positioned land and energy assets, we are now at the forefront of the data-driven transformation taking place in the nation's fastest growing segment of commercial real estate," said Christopher Clemente, Comstock's chairman and chief executive officer.

The joint venture plans to monetize the land portfolio through powered-land sales, build-to-suit ground leases, and joint development of data center assets. The partners also entered into a right-of-first-offer arrangement giving the joint venture preferred rights on additional Jericho-affiliated properties across Oklahoma.