New Era Energy & Digital (NASDAQ:NUAI) has locked in power for one of the country’s most closely watched new data center projects, securing a 20-year agreement with Vistra Corp that supplies electricity for the first phase of its Texas Critical Data Center.
The company said its subsidiary, TCDC PowerCo, has signed the power purchase agreement with Vistra affiliate Luminant ET Services Company, an affiliate of for a minimum of 200 MW and up to 207 MW to supply Phase 1 of the project.
The news sent New Era shares flying over 30% higher on Monday, reaching around $7.65 in early afternoon trading.
Power will come from Vistra’s 1,180 MW natural gas-fired plant in Odessa, Texas, which sits next to the TCDC site.
The agreement carries automatic one-year renewals after its initial 20-year term, with firm, contracted power expected to reach TCDC in the third quarter of 2027.
“Having firm, contracted power for Phase 1 in New Era’s name is an incredible milestone which we believe materially reduces Phase 1 development risk at TCDC,” said Charlie Nelson, CEO of New Era.
“With the land secured, construction permits in hand, Phase 1 power contracted for 20 years, and room to expand to multiple phases, we believe this is an attractive opportunity to any quality tenant currently in the market.”
Alongside the PPA, New Era and Vistra affiliates also signed a development framework agreement giving Vistra a 5% non-voting interest in the powered portion of the project once delivery begins, plus first refusal rights on future TCDC development and first offer rights on other New Era projects.
“Demand for reliable power to support digital infrastructure continues to grow across the United States,” said Claudia Morrow, Senior Vice President of Corporate Development and Strategy at Vistra. “We are pleased to work with New Era on a long-term power arrangement for the TCDC project and to establish a framework that allows us to evaluate additional power opportunities together over time.”
https://finance.yahoo.com/energy/articles/era-energy-secures-20-power-132300226.html?shem=aimgspc,
