LandBridge has entered into a landmark agreement with PowerBridge to develop a 2GW powered data center campus in West Texas. The project, known as the Alpha Digital Campus, will be located in Reeves County near the Waha natural gas hub and is designed to combine hyperscale data center capacity with co-located power generation. The deal grants PowerBridge the option to lease up to 3,400 acres, with first power expected by 2027 and full-scale generation ramping up from 2028, positioning the development at the forefront of the AI-driven data center boom in the region.

What Makes Alpha Digital Campus in West Texas Important?

The partnership is part of a broader shift in the U.S. data center industry toward co-located energy and compute infrastructure, particularly in regions with abundant natural gas and land availability like West Texas. West Texas, anchored within the Permian Basin, is emerging as a strategic hub. This is due to its cheap energy resources, favorable permitting environment, and large contiguous land parcels.

Alpha Digital Campus also forms part of a wider strategy by Five Point Infrastructure, the private equity firm backing both LandBridge and PowerBridge, to transform the Permian Basin into a hybrid energy–technology corridor. This ecosystem integrates land (by LandBridge), power generation, water infrastructure, and fiber connectivity to attract hyperscale clients.

Drivers for demand are also clear at this point. The rapid growth in AI workloads, cloud computing, and high-performance computing is pushing hyperscalers toward gigawatt-scale campuses. Developments like Alpha Digital aim to deliver “pad-ready” sites with pre-integrated power, significantly reducing deployment timelines for major tech tenants.

Project Cost

The total capital expenditure for Alpha Digital Campus has not been made publicly yet. However, the scale of the project points to a multi-billion-dollar investment, particularly given the inclusion of up to 2GW of dedicated power generation infrastructure.

The financial logic for LandBridge also lies in converting its extensive land holdings – over 320,000 acres across Texas and New Mexico – into long-term, fee-based revenue streams tied to digital infrastructure leases and royalties.

Also noteworthy is that each gigawatt of data center capacity on LandBridge-controlled land could generate between $10 to 20 million annually in recurring income. This is a key indication of strong long-term cash flow potential if the project is fully realized.

Alpha Digital Campus Project Fact Sheet

Location: Reeves County, Texas

Site area: 3,400 acres

Capacity: Up to 2GW data center plus co-located power

Power source: Primarily natural gas

First power delivery: Expected 2027

Full-scale generation: From 2028

Developer: PowerBridge

Landowner: LandBridge

Investment type: Lease development agreement

Wider potential pipeline: Up to 18GW across LandBridge portfolio

Who is involved in the new 2 GW LandBridge and PowerBridge data center in West Texas

• LandBridge Company LLC – Landowner and development partner
• PowerBridge LLC – Data center and power infrastructure developer
• Five Point Infrastructure – Parent investor backing both entities
• Regional fiber and infrastructure partners (planned) – Supporting connectivity and campus integration

Leadership also includes PowerBridge CEO Alex Hernandez, formerly of Cumulus Data and Talen Energy, bringing experience in large-scale powered data center campuses. Also key in leadership is LandBridge CEO Jason Long, overseeing land strategy and infrastructure deployment.

What Lies Ahead for Alpha Digital Campus in West Texas

Key risks for the Alpha Digital Campus data center revolved around permitting timelines, power infrastructure execution, and customer acquisition. Although PowerBridge has already filed interconnection requests and begun procuring long-lead equipment, delays in regulatory approvals or grid integration could push timelines beyond 2027. Additionally, there is also exposure to commodity price volatility, particularly natural gas, which is central to the project’s energy model.

However, if the development of Alpha Digital Campus in West Texas is successful, it will validate the Permian Basin as a viable alternative to traditional data center hubs like Northern Virginia, Silicon Valley, or Ohio where Amazon is building a new $1 billion data center in Marysville.