LandBridge Announces Agreement with PowerBridge for the Development of a 2 GW Powered Data Center Campus
Agreement provides option to lease acreage for the development of a 2 GW powered data center campus in West Texas on LandBridge acreage in close proximity to the Waha natural gas hub
LandBridge Company LLC (NYSE:LB) ("LandBridge") today announced that it has entered into a lease development agreement with PowerBridge LLC ("PowerBridge") providing the option to lease up to ~3,400 acres in Reeves County, Texas from LandBridge for a giga-scale data center campus with up to 2 GW of initial co-located power generation under development by PowerBridge and its power partners (the "Alpha Digital Campus"). The lease development agreement grants PowerBridge the right to further advance site development activities and pursue entitlements for the Alpha Digital Campus and an ability to lease the property on a long-term basis for the development of campus digital infrastructure and associated power solutions to serve data center customers at scale.
PowerBridge is a Five Point Infrastructure portfolio company led by Chief Executive Officer, Alex Hernandez, who previously served as Founder and CEO of Cumulus Data and CEO of Talen Energy Corp (NASDAQ:TLN), one of the country's largest independent power producers. Cumulus Data, an affiliate of Talen, developed the first multi-gigawatt-scale powered data center campus co-located with wholesale power generation facilities in the United States. PowerBridge has filed its Generation Interconnection Request (GINR) for its power generation facilities and submitted associated data center load details, all of which will be served by PowerBridge's private use network. PowerBridge has also ordered long-lead-time equipment for necessary power infrastructure. The first power delivery date for the Alpha Digital Campus is anticipated in 2027 with large scale power generation following in 2028, subject to ongoing regulatory processes and commercial discussions.
Jason Long, Chief Executive Officer of LandBridge, stated, "This new agreement with PowerBridge represents a catalyst for executing on the West Texas data center thesis with a proven developer with a strong track record of power and data center execution at scale. West Texas is primed to accommodate growing data center demand through its vast, contiguous surface availability, attractive natural gas dynamics, significant water availability, and favorable grid outlook and permitting timeline, among other enablers. We are fully committed to leveraging our strategic land portfolio and relationship with PowerBridge to support data center development in the region."
Alex Hernandez, Chief Executive Officer of PowerBridge, stated, "We are excited to partner with LandBridge in advancing our powered campus development strategy, which integrates energy and digital infrastructure. PowerBridge provides customers with scalable power generation solutions integrated with campus electrical and civil infrastructure and a regional fiber conduit network under development by PowerBridge. Our powered campus infrastructure will provide customers with ‘pad-ready' campuses for multi-gigawatt vertical data center deployments that meet the pace and magnitude of hyperscaler customer requirements at Alpha Digital and other locations across West Texas."
About LandBridge
LandBridge owns or manages more than 320,000 surface acres across Texas and New Mexico, located primarily in the heart of the Delaware sub-region in the Permian Basin, the most active region for oil and gas exploration and development in the United States. LandBridge actively manages its land and resources to support and encourage energy and infrastructure development and other land uses, including digital infrastructure. LandBridge was formed by Five Point Infrastructure LLC, a private equity firm with a track record of investing in and developing energy, environmental water management and sustainable infrastructure companies within the Permian Basin. For more information, please visit: www.landbridgeco.com
Cautionary Statement Regarding Forward-Looking Statements
This news release may contain forward-looking statements that are based on LandBridge's beliefs, as well as assumptions made by, and information currently available to, LandBridge, and therefore involve risks and uncertainties that are difficult to predict, including the possibilities that the option to lease all or a portion of the acreage will not be exercised, or that the Alpha Digital Campus will not be completed and that the associated revenue for LandBridge would not be realized. Generally, future or conditional verbs such as "will," "would," "should," "could," or "may" and the words "believe," "anticipate," "continue," "intend," "expect" and similar expressions identify forward-looking statements. Forward-looking statements include any statements regarding the Alpha Digital Campus, including the ability of the counterparty to complete the Alpha Digital Campus, the ability to secure regulatory approvals, equipment, grid connections or other essential prerequisites in a timely manner or at all, and/or the expected benefits of the Alpha Digital Campus. These forward-looking statements are subject to a number of risks, uncertainties, and assumptions, many of which are beyond our control.
Forward-looking statements include, but are not limited to, strategies, plans, objectives, expectations, intentions, assumptions, future operations and prospects and other statements that are not historical facts, including our estimated future financial performance. You should not place undue reliance on forward-looking statements. Although LandBridge believes that plans, intentions and expectations reflected in or suggested by any forward-looking statements made herein are reasonable, actual results may vary materially and adversely from those envisaged in this news release due to a number of factors, including those risks more fully discussed in LandBridge's filings with the SEC, including its most recent Annual Report on Form 10-K and any subsequently filed Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. You can access LandBridge's filings with the SEC through the SEC's website at http://www.sec.gov. Except as required by applicable law, LandBridge undertakes no obligation to update any forward-looking statements or other statements herein for revisions or changes after this communication is made.
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LandBridge
Scott McNeely
Chief Financial Officer
Contact@LandBridgeCo.com
Mae Herrington
Director, Investor Relations
ir@LandBridgeCo.com
PowerBridge
Debra Raggio
Executive Vice President
debra@power-bridge.com
www.power-bridge.com
Lee Borthwick
Senior Vice President
lee@power-bridge.com
www.power-bridge.com
Media
Daniel Yunger / Nathaniel Shahan
Kekst CNC
daniel.yunger@kekstcnc.com / nathaniel.shahan@kekstcnc.com
Zack Zinser
iMiller Public Relations
powerbridge@imillerpr.com
