New Era Energy Secures 20-Year Vistra Power Deal for Texas Data Center
New Era Energy shares rose 30% after signing a 20-year power purchase agreement with Vistra to supply 200 MW to its Phase 1 Texas data center.
Key points
- New Era Energy signed a 20-year PPA with Vistra for 200-207 MW to power Phase 1 of its Texas data center.
- Shares surged over 30% to $7.65 as the deal secured firm power delivery starting in Q3 2027.
- Vistra acquired a 5% non-voting equity stake in the powered portion plus first refusal rights on future development.
New Era Energy & Digital (NASDAQ: NUAU) secured a 20-year power purchase agreement with Vistra Corp to supply electricity for Phase 1 of its Texas Critical Data Center. The deal involves a minimum of 200 MW and up to 207 MW of firm power, sourced from Vistra’s 1,180 MW natural gas-fired plant in Odessa, Texas, located adjacent to the data center site.
The announcement drove New Era Energy’s stock price up more than 30% on Monday, reaching approximately $7.65 in early afternoon trading. Management stated that having firm, contracted power in the company’s name materially reduces development risk for the first phase, while the land and construction permits are already secured.
Power supply details and timeline
TCDC PowerCo, a subsidiary of New Era, signed the agreement with Luminant ET Services Company, a Vistra affiliate. The contract guarantees power delivery beginning in the third quarter of 2027. Following the initial 20-year term, the agreement includes automatic one-year renewal clauses, ensuring long-term energy security for the facility.
Strategic partnership and equity structure
Beyond the power purchase, New Era and Vistra affiliates signed a development framework agreement. This grants Vistra a 5% non-voting interest in the powered portion of the project once delivery begins. Additionally, Vistra holds first refusal rights on future TCDC development and first offer rights on other New Era projects.
Claudia Morrow, Senior Vice President of Corporate Development and Strategy at Vistra, noted that demand for reliable power supporting digital infrastructure is growing across the United States. The framework establishes a basis for the two companies to evaluate additional power opportunities together over time, according to the report on proactiveinvestors.com.
Management perspective on project risk
Charlie Nelson, CEO of New Era, described the secured power as an incredible milestone that significantly lowers Phase 1 development risk. With land secured, permits in hand, and long-term power contracted, Nelson indicated the project is now positioned attractively for quality tenants seeking digital infrastructure space.
