New Era Energy & Digital said Monday that it reached a long-term power purchase agreement with Luminant, an affiliate of Vistra Corp., to supply the electricity needed for Phase 1 of its Texas Critical Data Center (TCDC) project. The announcement accompanied a 16% uptick in New Era shares Monday morning.
Under the terms of the 20-year PPA, Luminant will provide up to 207 MW of power to serve Phase 1. The electricity will be sourced from Vistra’s 1,180 MW natural gas-fired generation facility in Odessa, Texas, which sits adjacent to the TCDC site. Power under the agreement is expected to be available in the third quarter of 2027.
The initial contract term runs for 20 years and contains automatic one-year renewal periods thereafter. New Era said the arrangement delivers firm, contracted power that gives the company control over Phase 1 supply at the project.
In a press release, Charlie Nelson, Chairman and Chief Executive Officer of New Era, said that securing firm, contracted power for Phase 1 is a milestone the company believes materially reduces Phase 1 development risk at TCDC.
Separately from the PPA, affiliates of New Era and Vistra signed a development framework agreement intended to create a path for additional power development at TCDC and for other New Era projects. The framework outlines cooperative steps for future development but does not alter the immediate PPA terms.
The deal also includes a project equity component tied to power delivery. After power delivery begins, Vistra will receive a 5% non-voting interest in the portion of the data center project to which it supplies power under the PPA. In addition, Vistra gains a right of first refusal on future development opportunities at the TCDC project and a right of first offer on certain development opportunities serving other New Era projects.
New Era’s Texas Critical Data Centers project occupies a 493-acre site in the Permian Basin. The company anticipates that the site’s capacity can scale over time, reaching up to 1.4 GW as development progresses.
What this means
- The PPA secures a large portion of Phase 1’s power needs from a nearby natural gas plant, aligning generation and load geographically.
- Long-term contracted power and the associated development framework create a clearer pathway for project execution and potential future expansions.
- Vistra’s equity stake and contractual rights give it a structured role in the initial project area it will serve.
Timing and next steps
Power delivery under the PPA is scheduled to begin in the third quarter of 2027. The automatic annual renewal provision means the commercial relationship could extend beyond the initial 20-year term unless terminated according to the contract’s mechanisms. Following the start of deliveries, Vistra will take the agreed non-voting interest in the powered portion of the project and the parties will proceed under the development framework for any future work.