LandBridge Company has signed an agreement with NRG Energy to develop a 1,100 MW large-scale natural gas-fired power plant project in Reeves County, Texas. The proposed 1.1 GW facility is planned to power a potential data center in the Delaware Basin.
LandBridge, NRG Natural Gas-Fired Plant Project Factsheet
Project Utility: Natural gas-fired power generation for potential data center
Location: Reeves County, Texas (Delaware Basin/ West Texas)
Capacity: Up to 1,100 MW
Developers: LandBridge Company, NRG Energy
Current Status: Permitting and approvals
Proposed Completion Date: End of 2029
Power First, then Data Center
NRG, a Texas-based energy utility, has already filed air permit applications and electric interconnection requests for the plant. A final investment decision will hinge on securing a long-term power purchase agreement (PPA) with a data center operator. If confirmed, the plant could be operational by late 2029.
Outlook on the 1.1 GW LandBridge, NRG Natural Gas-Fired Plant Project
LandBridge controls about 277,000 acres of land in the Delaware Basin. This site sits adjacent to the Waha Gas hub which is a major U.S. natural gas market. The natural gas-fired plant proposal at this location passes as a strategic move.
Additionally, this location provides direct access to low-cost fuel and existing transmission lines and infrastructure. When these factors are combined, development risks for a large power facility like the 1,100 MW natural gas-fired plant planned by Landbridge and NRG are lowered.
Key Quote
Jason Long, CEO of LandBridge, said the partnership underscores the Basin’s role as a future digital-energy corridor. “By pairing our land platform with NRG’s operational strength, we can provide reliable and competitively priced energy to high-demand customers,” Long stated.
Energy-Data Center Industry Impact
Texas continues to draw attention as a growing market for data centers due to its abundant energy resources. These span from the Permian Basin and the Eagle Ford shale the state sits on, to the availability of land and better grid scalability when compared to other regions.
In addition to the attention, tech giants like AWS, Google, and Meta already run large Texas facilities as seen around Dallas–Fort Worth (DFW). J.P. Morgan-backed Blue Owl Capital is also building a massive two-phase 1.2 GW AI data center hub in Abilene, Texas. The billion-dollar facility uses natural gas turbines with Selective Catalytic Reduction (SCR) to lower emissions.
LandBridge’s parent company, Five Point Infrastructure, also launched PowerBridge earlier this year. PowerBridge is a $1 billion-backed developer of hyperscale data center campuses, with its first projects also planned in the US. Mapping out this strategic deployment, LandBridge controls energy-rich surface acreage for Five Point, while Powerbridge is mainly concerned with the synergistic development of data centers in the region and beyond.
