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LandBridge Company LLC (LB) on Tuesday entered into a strategic collaboration with NRG Energy Inc. (NRG) to explore the development of a major data center site in Reeves County, Texas.
The plan includes a potential 1,100-megawatt natural gas power plant, which NRG may build if it secures a suitable power purchase agreement tied to data center operations.
Following the announcement, LandBridge stock traded over 6% higher in Tuesday’s premarket. On Stocktwits, retail sentiment around the stock improved to ‘neutral’ from ‘bearish’ the previous day, amid ‘normal’ message volume levels.
The companies are positioning the site to support the power needs of large-scale data center operations, which continue to grow as artificial intelligence and cloud computing drive demand for energy-intensive computing. If development proceeds, the plant could be operational by the end of 2029, according to early permitting and grid interconnection filings already in motion.
“Once anchored by a long-term customer, the site has the potential to foster innovation and support data center growth, economic resilience, and grid stability in the region,” said Executive Vice President, President of NRG Business and Wholesale Operations, Robert J. Gaudette.
The project leverages LandBridge’s strategic land holdings near the Waha natural gas hub. The proximity provides access to a cost-efficient gas supply and an established transmission network, giving the location a logistical edge for powering high-demand digital infrastructure.
LandBridge controls approximately 277,000 surface acres in Texas and New Mexico, primarily located in the Delaware area of the Permian Basin. The company oversees its land to promote energy projects, infrastructure growth, and other uses like digital development.
LandBridge stock has lost over 19% in 2025 and has gained over 26% in the last 12 months.
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