New Era Energy & Digital has locked in a 20-year power purchase agreement with Vistra Corp for the Texas Critical Data Center, a $2.5 billion data center project in Texas. Consequently, TCDC PowerCo, New Era’s subsidiary, has contracted for a minimum of 200 megawatts and up to 207 megawatts of electricity for Phase 1 of the facility. Power will be supplied from Vistra’s 1,180-megawatt natural gas-fired plant in Odessa, Texas, located adjacent to the project site. Meanwhile, firm, contracted power is expected to reach the facility in the third quarter of 2027.
The 20-year agreement carries automatic one-year renewals following the initial term, providing long-term power security for the Texas Critical Data Center development. Specifically, New Era has secured land, obtained construction permits, and now contracted power supplies for Phase 1 operations. Therefore, the Texas Critical Data Center represents a substantially de-risked development opportunity for prospective tenants seeking reliable data center capacity. Renewable projects such as the solar are facilitating in the rise of data centers with the Cypress Creek energy project aiming at powering Google’s data center in Mississippi taking shape.
Texas Critical Data Center Attracts Major Power and Investment Partners
Vistra has secured a 5% non-voting interest in the powered portion of the project once power delivery begins. Furthermore, the energy company holds first refusal rights on future Texas Critical Data Center expansion phases and first offer rights on other New Era projects. This partnership structure positions Vistra as a strategic stakeholder in the facility’s long-term development trajectory.
The project’s adjacency to Vistra’s 1,180-megawatt Odessa power plant eliminates transmission complexity and supports operational reliability. CEO Charlie Nelson stated the firm power contract “materially reduces Phase 1 development risk at TCDC.”
Addressing Growing US Data Center Power Demands
Demand for reliable electricity supporting digital infrastructure continues accelerating across the United States. The Texas Critical Data Center project capitalizes on this trend by combining available land, development permits, and secured power supplies. Specifically, the facility is positioned to attract quality tenants seeking guaranteed power availability and infrastructure reliability. Vistra Senior Vice President Claudia Morrow emphasized the company’s commitment to digital infrastructure development through the project partnership and framework for future opportunities.
Project Overview
- Project Name: Texas Critical Data Center (TCDC)
- Project Value: $2.5 Billion (estimated)
- Location: Odessa, Texas (ERCOT region)
- Developer: New Era Energy & Digital (NASDAQ: NUAI)
- Power Provider: Vistra Corp (via Luminant ET Services Company)
- Status: Phase 1 power contracted, operational Q3 2027
Scope
- Multi-phase data center development
- Phase 1: 200–207 MW capacity
- Adjacent to 1,180 MW natural gas power plant
- Infrastructure for AI and cloud computing
- Expansion capacity for additional phases
Project Highlights
- $2.5 billion data center project
- 20-year power purchase agreement
- 200–207 MW Phase 1 capacity
- Land secured and permits obtained
- Automatic one-year renewal provisions
Key Developments
- 20-year PPA signed September 2026
- Vistra 5% non-voting interest agreement
- First refusal/offer rights structure
- Phase 1 power delivery Q3 2027
- Development framework agreement finalized
Key Challenges
- Managing multi-phase buildout timeline
- Coordinating with Vistra power operations
- Attracting and retaining quality tenants
- Expanding capacity beyond Phase 1
- ERCOT grid integration requirements
Outlook
- Phase 1 operations beginning Q3 2027
- Multi-phase expansion opportunities
- Long-term power reliability secured
- Tenant attraction and leasing
- Additional Vistra partnership opportunities
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