New Era Energy Shares Rise 16% After Securing 20-Year Power Agreement With Vistra

New Era Energy & Digital (NASDAQ:NUAI) shares gained 16% on Monday morning after the company announced a 20-year power purchase agreement with Luminant, an affiliate of Vistra Corp. (NYSE:VST), for the first phase of its Texas Critical Data Centers (TCDC) project.

The agreement will provide up to 207 megawatts (MW) of electricity for Phase 1 of the development, with power expected to become available in the third quarter of 2027.

The arrangement establishes a contracted electricity supply for the initial phase of the project, which New Era is developing in Texas’s Permian Basin.

Vistra to Supply Power From Odessa Gas Facility

Under the power purchase agreement, Luminant will supply electricity from Vistra’s 1,180 MW natural gas-fired generating facility in Odessa, Texas.

The power plant is located adjacent to the TCDC development site.

The agreement has an initial term of 20 years and includes automatic one-year renewal periods.

New Era said securing contracted power for Phase 1 represents an important step in advancing the project.

Charlie Nelson, chairman and chief executive officer of New Era, described the agreement as a milestone that the company believes materially reduces development risk for the initial phase.

The contracted supply addresses a key infrastructure requirement, although power delivery is not expected to begin until the third quarter of 2027.

Development Agreement Establishes Framework for Future Expansion

Alongside the power purchase agreement, affiliates of New Era and Vistra entered into a development framework agreement covering potential future electricity infrastructure at TCDC and other New Era projects.

Under the arrangement, Vistra will receive a 5% non-voting interest in the portion of the data centre project supplied under the power agreement once electricity deliveries commence.

Vistra will also receive a right of first refusal on future development opportunities at TCDC.

The agreement provides an additional right of first offer for certain development opportunities associated with other New Era projects.

These provisions establish a framework for potential cooperation beyond the initial 207 MW power supply arrangement, although additional developments would require separate implementation.

Texas Data Centre Project Targets 1.4 GW Capacity

New Era’s Texas Critical Data Centers project occupies a 493-acre site in the Permian Basin.

The company anticipates that the development could eventually reach a capacity of 1.4 gigawatts (GW), substantially above the power contracted for its first phase.

The newly announced agreement covers up to 207 MW and does not establish electricity supply for the project’s full planned capacity.

Further expansion will depend on additional infrastructure, power arrangements and project development.

The Vistra agreement provides New Era with a long-term electricity supply arrangement for Phase 1 while creating a framework for potential future cooperation as the data centre development progresses.

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