NRG Energy has partnered with LandBridge Company to explore the construction of a 1.1GW natural gas power plant in Reeves County, Texas, with the potential to directly serve the rapidly growing data center industry.
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The agreement outlines that NRG will move forward with building the grid-connected facility once it secures a Power Purchase Agreement (PPA) with a data center operator, ensuring a stable long-term customer for the project.
Initial regulatory steps are already in progress, including air permit applications and electric interconnection requests. If the development proceeds, the companies anticipate operations beginning by the end of 2029.
“We are pleased to explore bringing reliable energy solutions to West Texas,” said Robert J. Gaudette, EVP, president of NRG business and wholesale operations. “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.”
The project would be strategically located next to the Waha Gas market hub, one of the largest natural gas trading points in the U.S. This location offers direct access to abundant, low-cost natural gas and established transmission infrastructure — a key factor in meeting the energy demands of hyperscale data centers.
“NRG’s selection of this site for potential development of critical power generation supported by a data center project marks an exciting step forward for both LandBridge and the entire Delaware Basin,” said Jason Long, CEO of LandBridge. “The collaboration further advances our powered land strategy and highlights the compelling value that LandBridge offers to blue-chip power generators, and to developers of digital infrastructure, particularly data centers.”
LandBridge, formed by Five Point Infrastructure, controls roughly 277,000 acres across Texas and New Mexico, primarily in the Delaware Basin — a resource-rich region that has become increasingly attractive for energy-intensive industries.
This isn’t NRG’s first foray into powering digital infrastructure. Earlier this year, the Houston-based company signed a 295MW supply agreement to provide electricity to two undisclosed data centers in Texas. That deal followed NRG’s $12 billion acquisition of LS Power assets, which added 18 natural gas plants with a combined 13GW of capacity and a 6GW virtual power plant platform known as CPower.
In addition, NRG has signed letters of intent with developers PowLan and Menlo Equities for a combined 800MW of gas-fired capacity, while also partnering with GE Vernova and TIC to advance up to 5.4GW of natural gas generation for both ERCOT and PJM markets.
The growing focus on gas-powered energy solutions highlights the pressure data center operators face in securing reliable electricity amid soaring demand from artificial intelligence, cloud computing, and digital infrastructure growth. Texas, with its abundant natural gas reserves and relatively deregulated energy market, has become a focal point for such large-scale energy and data center projects.
If realized, the NRG–LandBridge plant would mark another milestone in West Texas’ emergence as a hub for energy and digital infrastructure, combining the region’s rich energy resources with its rising role in powering the data-driven economy.
Originally reported by Zachary Skidmore in Data Center Dynamics.
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