Algorhythm markets 1,500 MW Mississippi power campus with 10% stake

Algorhythm Holdings says its Azure Energy unit is preparing a 1,500 MW combined renewable natural gas and biomass project in Mississippi for market as engineering nears completion. The company says the site could support a data center or advanced manufacturing tenant, with a sale or long-term operation both possible in 2027.

Why it matters: - The Mississippi project combines power, water and site readiness in one package, which could appeal to large-load tenants that need speed to market. - Algorhythm Holdings is positioning the project as either a long-term cash-flow asset or a saleable development, giving the company two ways to unlock value. - The project’s size and behind-the-meter structure could make it relevant to data centers and advanced manufacturers looking for dedicated energy supply.

What happened: - Algorhythm Holdings said Azure Energy is preparing a 1,500 MW combined renewable natural gas and biomass power project in Mississippi for market. - Engineering for the project is nearly complete. - The project is being marketed to potential tenants, including data centers and advanced manufacturing facilities, that could co-locate on the site. - Algorhythm Holdings said Azure currently holds a 10% equity stake in the project.

The details: - The project is valued at up to $1.66 billion if sold, based on prevailing market conditions. - The full campus is planned for a 1,664-acre site in north-central Mississippi. - The design includes 500 MW of net generation from a biomass pyrolysis-to-power plant, 1,000 MW of natural gas generation and a 150,000-ton absorption chilled water plant. - All output is planned to be delivered behind the meter to a single co-located large-load tenant. - The company identified hyperscale data centers and advanced manufacturing facilities as the target tenant types. - The campus is expected to come online in three phases. - The first phase is expected to deliver about 250 MW within 18 months of notice to proceed. - Full generation capacity is expected within 54 months of notice to proceed. - Local development partners have secured feedstock through a right of first refusal and a memorandum of understanding. - Phase II engineering is scheduled for completion in October 2026. - An independent engineer report is due in December 2026. - Azure expects about $5 million in fee income in 2027 under the current scope of engagement. - The company said additional fee income remains under negotiation. - If the project is completed as scheduled, Azure is projected to earn about $40 million in annual EBITDA once the project reaches full operation. - If the project is sold after final permitting in early 2027, Azure would expect gross proceeds of about $166 million from its equity stake, plus transaction-management fees.

Between the lines: - The company is signaling that the project may be more valuable as a ready-to-market asset than as a purely operating project, depending on buyer demand in 2027. - The emphasis on shovel-ready infrastructure, power and water suggests Algorhythm is targeting customers that value reduced development risk and faster deployment. - The dual-path structure also gives Algorhythm flexibility if capital markets or tenant demand change.

What's next: - Algorhythm expects to choose capital markets partners before the end of Q4 2026 to review offers. - Full marketing of the project is expected to begin in early Q1 2027. - Final permitting is expected in early 2027, which could set up either a sale or continued project development. - Andrew Thompson, Algorhythm’s CEO, said the company is now deciding how to launch a comprehensive marketing process.

The bottom line: - Algorhythm is trying to turn its Mississippi energy campus into a high-value, near-ready asset for data center or industrial users, with a possible sale or operating payoff ahead in 2027.

More information: the company's announcement

Company websites: Azure Energy, SemiCab