LandBridge Company LLC entered into a lease development agreement with PowerBridge LLC that gives PowerBridge the option to lease up to approximately 3,400 acres in Reeves County, Texas for a 2‑GW powered data‑center campus. The campus, named Alpha Digital, will be co‑located with a 2‑GW power generation facility that PowerBridge and its partners are developing, with the first power delivery expected in 2027 and full‑scale generation in 2028.
"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," said LandBridge CEO Jason Long. Long added that 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.
PowerBridge, a Five Point Infrastructure portfolio company, will provide the powered campus infrastructure. "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," said PowerBridge CEO Alex Hernandez.
LandBridge’s recent financial performance underscores the strategic value of the deal. Revenue surged 81% year‑over‑year in the last twelve months, and Q2 2025 revenue reached $47.5 million, up 83% YoY. The company also reported robust Q4 2025 results with strong adjusted EBITDA margins, reflecting disciplined cost management and a growing revenue base.
The partnership is expected to generate significant free‑cash‑flow. LandBridge has indicated that each gigawatt of data center capacity on its land could produce $10‑$20 million in annual free‑cash‑flow from lease and royalty streams, positioning the company to capture a high‑growth segment of the technology economy.
Reeves County’s proximity to the Waha natural gas hub provides a reliable, low‑cost power source, while the region’s abundant water and favorable permitting environment support large‑scale data‑center construction. These factors make the site an attractive location for a powered campus.
The lease development agreement is part of a broader vision to transform the Permian Basin into a hybrid energy‑technology corridor that integrates land, power, water, and fiber. By leveraging its 315,000‑to‑320,000 acres of surface land, LandBridge is positioning itself to become a key player in the data‑center market.
PowerBridge’s partners in the power generation facility are not named in the public disclosure, but the company’s track record in gigawatt‑scale projects signals strong execution capability.
The option to lease up to 3,400 acres gives LandBridge a flexible, long‑term revenue stream while allowing PowerBridge to develop the campus on a scale that matches the growing demand for hyperscaler data‑center capacity in West Texas.
The deal positions LandBridge to capture a high‑growth, recurring revenue stream, leverages its land assets, and supports its long‑term growth strategy in a region that is rapidly becoming a technology hub.
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