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Commitments and Contingencies | 3 Months Ended
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Mar. 31, 2026
Commitments and Contingencies Disclosure [Abstract] |
Commitments and Contingencies | Commitments and Contingencies Commitments Lease Commitments As of March 31, 2026, the Company had various fixed and variable lease payment obligations associated with the TTU Lease, the Gabel Lease and the Sides Lease. The Company also has a lease agreement with MPS through which the Company will be subject to fixed lease payments once the lease commences. See Note 6, Leases, for additional information. Surety Bonds and Letters of Credit In the course of business, we are required to provide financial commitments in the form of surety bonds and letters of credit to third parties as a guarantee of our performance on and our compliance with certain obligations. If we fail to perform or comply with these obligations, a draw on the applicable surety bond or letter of credit would trigger our obligation to reimburse the issuer. We have outstanding surety bonds issued for our benefit of approximately $35,810 and letters of credit of $5,333 as of March 31, 2026. Unconditional Purchase Obligations For the three months ended March 31, 2026, the Company entered into unrecognized commitments that require the future purchase of goods or services (“unconditional purchase obligations”). As of March 31, 2026, the Company’s unconditional purchase obligations of $192,419 relate to long lead time equipment purchases, of which approximately $172,380 will be funded through draws on our existing equipment financing facilities. Future payments under unconditional purchase obligations as of March 31, 2026 are as follows:
Years Ending December 31, |  | Payments by Year
2026 |  | $ | 88,200 |
2027 |  | 71,279 |
2028 |  | 32,940 |
2029 |  | — |
2030 |  | — |
Thereafter |  | — |
Total unconditional purchase obligations |  | $ | 192,419 |
Contingencies Legal Contingencies In the ordinary course of business, we may become party to various legal actions that are routine in nature and incidental to the operation of the business. Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred, and the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. As of March 31, 2026, we are not aware of any matters that are expected to have a material adverse effect on our business, financial position, results of operations, or cash flows, and therefore we have not accrued any material losses related to such matters. Litigation – Securities Class Action On January 5, 2026, the Company, certain of its directors and officers, and certain underwriters of the Company’s IPO were named as defendants in a putative securities class action filed in the U.S. District Court for the Southern District of New York. The complaint alleges that the Company made materially false and misleading statements and omissions in the registration statement and prospectus issued in connection with the IPO and in other public statements during the period from October 1, 2025 through December 11, 2025, in violation of Sections 11 and 15 of the Securities Act of 1933 and Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as well as Rule 10b-5 promulgated thereunder. The action seeks unspecified damages on behalf of a purported class of purchasers of the Company’s common stock pursuant and/or traceable to the IPO registration statement and/or during the alleged class period. The Company intends to vigorously defend against the action. As of March 31, 2026, the Company is unable to reasonably estimate the possible loss or range of loss, if any, associated with this matter. Litigation – Firebird On January 27, 2026, a petition captioned 340 Energy, LLC v. Firebird LNG, LLC, et al. was filed in the District Court of Harris County, Texas, and subsequently removed to the Business Court of Texas, Eleventh Division (Cause No. 26-BC11B-0016). The defendants include the Company, two of its affiliates (Fermi Equipment Holdco, LLC and Firebird Equipment Holdco, LLC), the Company's General Counsel, and several unaffiliated parties. The plaintiff, as assignee of XO Energy Worldwide LLP, alleges that the defendants engaged in a scheme – including through a Delaware divisive merger pursuant to which a contract for six natural gas turbines was acquired by a Company affiliate for consideration in excess of $165 million – to evade an alleged brokerage commission, and asserts claims under the Texas Uniform Fraudulent Transfer Act (and, alternatively, the Delaware Uniform Voidable Transfers Act), along with claims for tortious interference, civil conspiracy, breach of contract, and quantum meruit, seeking compensatory and exemplary damages, avoidance of the challenged transfers, and other equitable relief. The Company and its named affiliates moved to dismiss under Texas Rule of Civil Procedure 91a on March 31, 2026; the plaintiff filed a First Amended Petition on April 16, 2026, and a hearing on the Company's anticipated renewed motion to dismiss is set for June 22, 2026, with trial scheduled for May 24, 2027. In connection with the underlying transaction, MAD Energy LP, also a named defendant, agreed to indemnify the Company and its affiliates against claims relating to the engagement of XO Energy or its affiliates as a broker or finder. The Company intends to vigorously defend against the action. As of March 31, 2026, the Company is unable to reasonably estimate the possible loss or range of loss, if any, associated with this matter. Contingent Consideration In connection with the acquisition of the Company's first six Siemens SGT-800 gas turbines from MAD Energy Limited Partnership ("MAD Energy") (the "Firebird Acquisition"), the Company assumed an obligation to pay MAD Energy a net profits interest (the “NPI”). Under the NPI, the Company is liable to pay a portion of 2.5% of net operating income from the first 1,000 MW of installed dispatchable generation capacity at the Company’s AI infrastructure campus subject to a $100,000 cap on a net present value basis. Refer to Note 5, Acquisitions, of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2025 for additional detail on the acquisition and related consideration.

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