Hallador Energy proposal for Sullivan County data center falls through
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Just months after signing an agreement with an undisclosed developer, Hallador Energy is being forced to scrap plans for a data center in Sullivan County after the other company pulled out of the deal.
In a filing with the Securities & Exchange Commission last week, Hallador stated its “Conversion Transaction Commitment Agreement…with a leading global data center developer was being terminated by the counterparty” on May 19.
The Terre Haute-based energy company had plans for a data center in Sullivan County near the Merom Generating Station it purchased in 2022. The Merom station is an electric generator, which Hallador has been looking to increase in recent years as it transitions away from coal with its subsidiary Sunrise Coal.
In 2024, Hallador reduced coal production by 40%, but it’s electrical sales increased 89% in the fourth quarter of the year.
In January, Hallador signed a non-binding agreement with an unnamed developer to explore a data center that would use power from the Merom station. IIB reported the agreement gave the company exclusive negotiating rights with the company.
But that deal has fallen through and it’s unclear why. Representatives from Hallador did not return messages from Inside INdiana Business on Friday. The company’s filing with the SEC says the energy provider and the developer are continuing to negotiate on a non-exclusive basis and that Hallador is now entertaining talks from other developers.
“[Hallador] is evaluating opportunities with several other interested third parties and believes that the competitive tensions introduced by these third-party negotiations enhances its positioning to execute a strategic transaction that delivers long-term value to its shareholders,” the filing says.
Hallador purchased the 1-gigawatt Merom Generation Station from Hoosier Energy in 2022 for an undisclosed price.