LandBridge and NRG Team Up for Large-Scale Power Solution in Delaware Basin

LandBridge Company (NYSE:LB) has announced a new strategic agreement with NRG Energy that could reshape digital infrastructure in West Texas. The partnership centers on a 1,100 megawatt, grid-connected natural gas generation facility in Reeves County—an ambitious project aimed at providing reliable, scaled power for future data center development in the Delaware Basin.

Key Details: New 1,100 MW Plant Could Anchor Major Data Center

Under the terms of the agreement, NRG could build the new facility if a suitable data center customer signs a power purchase agreement. Applications for air permits and electric interconnection have already been submitted, putting the project on track for possible in-service as early as year-end 2029. If realized, the plant would not only bolster grid stability but also attract digital infrastructure investment to one of the country’s most energy-rich regions.

Strategic Site: Proximity to Waha Gas Market Enables Competitive Advantage

The targeted location, adjacent to the Waha Gas hub, provides direct access to significant existing natural gas and transmission infrastructure. This geographic advantage lowers potential project costs and accelerates timelines—critical factors as energy demand from AI and cloud data centers intensifies nationwide. The partnership also spotlights LandBridge’s 'powered land' strategy, which seeks to unlock greater value by pairing its land resources with top-tier energy providers and digital infrastructure developers.

Growth Potential for Regional Infrastructure and Economic Development

NRG's executive vice president, Robert J. Gaudette, emphasized that the collaboration could strengthen grid reliability and economic resilience in West Texas, serving both energy and technology sectors. If the project proceeds, it could signal broader growth for data centers and associated service providers in the Delaware Basin—a region already known for oil, gas, and industrial infrastructure.

Takeaway: A Step Toward Transforming the Delaware Basin into a Digital Powerhouse

While there is still a long path ahead—including securing an anchor data center tenant—the proposed facility signals LandBridge's intent to play a pivotal role in supporting future data center demand with locally sourced, reliable energy. Investors and industry watchers should track progress on permitting, power purchase agreements, and broader sector developments to gauge when, or if, this bold vision will take shape.

Forward-Looking Statements and Risk Considerations

It's worth noting that the project’s realization hinges on a variety of contingencies, including customer demand, regulatory approvals, and potential market fluctuations. LandBridge reminds stakeholders not to rely unduly on forward-looking statements, citing the inherent uncertainty and possible material differences from anticipated outcomes.

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