New Era signs 20-year gas PPA with Vistra subsidiary to power 250MW data center in Ector County, Texas

Texas data center developer New Era Energy & Digital has signed a 20-year Power Purchase Agreement with Luminant, a subsidiary of Vistra, for a minimum of 207MW of power to supply phase one of its Texas Critical Data Center project in Ector County, Texas. The power will be delivered directly from Vistra's 1.1GW natural gas-fired generating facility in Odessa, Texas, which is located immediately adjacent to the TCDC site. Power delivery is expected to commence in Q3 of 2027, and the PPA was signed through a New Era subsidiary, TCDC PowerCo.

The agreement includes a five percent non-voting interest in the data center to Vistra, which the company will acquire following the first delivery of power. It also provides Vistra with a right of first refusal on future development opportunities at the TCDC project and a right of first offer on certain development opportunities serving future projects. New Era chairman and CEO Charlie Nelson said the contracted power "materially reduces phase one development risk" and turns TCDC into "permitted powered land." The project has expanded over time: initially envisioned as a 90MW data center, it was later expanded to 250MW. In December, New Era secured Sharon AI's stake in the company for $70 million and closed the purchase of an additional 203-acre site, taking the campus to 438 acres.

The long-term PPA and adjacent gas generation suggest New Era is positioning TCDC as a de-risked, power-secured development opportunity for prospective tenants. Vistra's equity interest and future development rights align the utility's incentives with the project's success, while the 20-year term provides revenue visibility for Vistra's Odessa plant. The arrangement also reflects broader demand for reliable power to support digital infrastructure, as noted by Vistra senior vice president Claudia Morrow.

What remains unknown is whether New Era has secured a tenant or financing for phase one. The dossier notes only a non-binding letter of intent from April to form a joint venture with Stream Data Centers for development and financing, but no binding commitment is confirmed. The source also does not specify the total cost of the project, the identity of any end users, or the terms under which Vistra's right of first refusal or right of first offer would be exercised.