New Era secures 207 MW with Vistra for its data center in Texas

New Era Energy & Digital secured the electricity supply for the first phase of Texas Critical Data Center through a 20-year PPA with a Vistra subsidiary.

Data center and electricity supply are linked in the new agreement signed by New Era Energy & Digital to move forward with the first phase of the Texas Critical Data Center (TCDC) in Texas.

The company, through its subsidiary TCDC PowerCo LLC, closed a 20-year power purchase agreement (PPA) with Luminant ET Services Company LLC, a subsidiary of Vistra. The contract will allow access to between 200 MW and 207 MWpower.

The objective is to ensure the necessary electricity supply to develop Phase 1 of the project, the energy will come from a Vistra natural gas-fired power plant located in Odessa, Texas, with an approximate capacity of 1.180 MW.

One of the most relevant elements of the agreement is the proximity between both facilities, since the power plant is located immediately next to the land where New Era is developing the TCDC.

According to the announced schedule, the contracted supply will be available during the third quarter of 2027. The agreement will have an initial term of 20 years and may subsequently be automatically renewed for additional one-year periods.

The data center provides up to 207 MW for its first phase

For New Era, having directly contracted power represents an important step in planning the first phase. The PPA establishes a minimum supply of 200 MW, with the possibility of reaching up to 207 MW.

This capability will support the initial development of a data center designed to handle high-power computing workloads, the company is focusing the project on artificial intelligence applications, hyperscale operators, enterprise clients, and edge computing solutions.

Charlie Nelson, chairman and chief executive of New Era Energy & Digital, noted that securing the electricity supply for Phase 1 reduces, according to the company’s assessment, some of the risk associated with the development of the TCDC.

New Era currently states that it already has the land, building permits, and the long-term electricity supply contract for the first phase. Furthermore, there is the possibility of developing new phases within the same site.

Having a defined source of electricity from the early stages is especially relevant in large-scale digital infrastructure projects, where the availability of power can condition both the pace of construction and the future capacity of the facilities.

Vistra will supply the project from a 1,180 MW plant

The electricity included in the PPA will come from the natural gas-fired power plant that Vistra operates in Odessa. The facility has an approximate capacity of 1.180 MW and is located next to the Texas Critical Data Center.

This proximity directly connects New Era digital infrastructure development with an existing power generation source in the area. According to the contract, Luminant, as a subsidiary of Vistra, will be responsible for supplying the agreed-upon energy.

The contracted power will be specifically allocated to Phase 1 of the project and, according to the schedule communicated by New Era, the firm supply should be available during the third quarter of 2027.

The 20-year term also provides the project with a long-term energy structure, once that initial period is over, the agreement includes automatic annual renewals.

In addition to the supply for this first stage, the companies agreed to explore new opportunities linked to the energy needs of future phases of development.

The Texas Critical Data Center could reach a capacity of 1.4 GW

The Texas Critical Data Center is New Era Energy & Digital’s main project, and is being developed on approximately 493 acres in the Permian basin and the company plans to progressively expand its capacity until it reaches 1,4 GW.

Therefore, the up to 207 MW included in the agreement with Vistra corresponds only to the first stage of an infrastructure with a considerably greater expansion potential.

New Era plans to develop the complex using a modular and phased model, this approach will allow new capacity to be added progressively as construction advances and demand from future users increases.

The company is also considering flexible energy solutions, including behind-the-meter generation systems. This model allows certain electricity sources to be connected directly to consumer facilities without relying solely on traditional grid supply schemes.

Furthermore, New Era notes that its strategy includes water efficiency measures and on-site power generation. The company aims to use these solutions to reduce its impact on nearby communities and accelerate power availability for future customers.

Energy infrastructure for artificial intelligence workloads

One of the goals of the Texas Critical Data Center is to handle training and inference workloads of artificial intelligence activities that require large volumes of electrical capacity. The company also considers hyperscale operators, enterprise customers, and edge computing solution providers as potential users.

In this scenario, energy availability takes on a central role within the project, the first phase will have up to 207 MW under the new PPA, while the full development of the TCDC envisions a much greater capacity as the following stages progress.

The combination of land, permits, and contracted power allows New Era to move forward with structuring the complex and present the project to potential tenants seeking infrastructure for high-demand digital operations.

The location in the Permian Basin is also part of the company’s strategy to develop data centers in regions with access to abundant energy resources.

New Era and Vistra expand their agreement beyond electricity supply

The 20-year PPA is just one part of the announced relationship between the two companies, in parallel, New Era and Vistra subsidiaries signed a framework development agreement intended to create a pathway for future energy initiatives related to both the Texas Critical Data Center and other New Era projects.

Once the supply stipulated in the PPA begins, Vistra will receive a share of 5% without voting rights in the part of the data center project supplied by the contract.

In addition, Vistra will have a preferential right of acquisition on future development opportunities linked to the TCDC and a right of first offer on certain opportunities related to other New Era projects.

These conditions extend the relationship between the two companies beyond the initial supply contract and create a framework for jointly assessing new energy needs.

Claudia Morrow, senior vice president of Corporate Development and Strategy at Vistra, noted that the demand for reliable electricity to support digital infrastructure continues to grow in the United States. According to the executive, the collaboration with New Era will allow both companies to explore additional opportunities as the market evolves.

The agreement with Vistra boosted New Era stock

The announcement also had repercussions in the market, shares of New Era Energy & Digital registered an advance of nearly 16 % during the morning after the energy agreement was announced, according to Investing.com.

The move came after the market learned that the company had secured, through a long-term contract, the necessary supply for the first phase of its main digital infrastructure project.

The energy component is especially relevant due to the planned dimensions of the TCDC, whose site contemplates a multi-phase expansion to eventually reach a total capacity of 1,4 GW.

However, the announced PPA only covers Phase 1 and establishes a supply range of between 200 MW and 207 MW. Firm capacity should be available during the third quarter of 2027.

The data center is progressing towards the planned delivery date of 2027

With the new agreement, New Era Energy & Digital has a long-term energy contract to support the first stage of the Texas Critical Data Center.

The project combines an area of ​​approximately 493 acres, a modular development, and an energy strategy that includes both contracted supply and behind-the-meter solutions. Its objective is to provide infrastructure for artificial intelligence and other digital operators with high power requirements.

The alliance with Vistra also adds a long-term dimension, in addition to supplying up to 207 MW during the first phase, both companies will be able to evaluate new opportunities related to future expansions of the complex.

According to the announced schedule, the next key milestone will be the availability of the contracted supply during the third quarter of 2027. From then on, New Era will have a defined energy base to move forward with the operation of the first phase of its data center in Texas.

Source: GlobeNewswire

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