Data center firm PowerBridge is targeting a multi-gigawatt data center campus in Texas.

NYSE-listed LandBridge this week announced that it has entered into a lease development agreement with PowerBridge for a potential data center development in Texas. The two companies share an investor.

The deal provides PowerBridge the option to lease up to ~3,400 acres in Reeves County, Texas from LandBridge for a gigawatt-scale data center campus with up to 2GW of initial co-located power generation under development by PowerBridge and its power partners. The power is known as the Alpha Digital Campus.

Founded in 2012, Texas-based Five Point Infrastructure is a private equity and infrastructure investor focused on investments within North America. The firm has approximately $8 billion of assets under management across multiple investment funds, and set up both LandBridge and PowerBridge.

Formed in 2021 by Five Point, LandBridge owns approximately 320,000 surface acres across Loving, Winkler, Reeves, Pecos, and Andrews Counties in Texas, as well as Lea County, New Mexico, located primarily in the heart of the Delaware sub-region in the Permian Basin.

Formed last year to develop large-scale data center campuses on LandBridge-owned land, the company is led by Alex Hernandez, who previously served as founder and CEO of Cumulus Data and CEO of Talen Energy.

Jason Long, LandBridge CEO, said: “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.”

PowerBridge CEO Hernandez added: “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.”

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 reportedly ordered long-lead-time equipment for the 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.

The campus is reportedly in close proximity to the Waha natural gas hub.

In total, LandBridge says it has identified some 25,000 acres of owned land suitable for data center development, potentially totaling 18GW of data center capacity.