Vistra's Odessa Gas Plant Powers 20-Year Deal for Permian Basin Data Center

New Era Energy & Digital, Inc. has anchored its Texas Critical Data Center project with two decades of contracted electricity, entering into a power purchase agreement with a Vistra Corp. affiliate that commits between 200 MW and 207 MW of generation to the first phase of development in the Permian Basin. The agreement, announced September 21, 2026, was structured through New Era's subsidiary TCDC PowerCo LLC and the Vistra affiliate Luminant ET Services Company LLC.

Physical Proximity as a Structural Advantage

The arrangement's foundation rests on geography. Vistra's natural gas-fired generating facility in Odessa, Texas, rated at 1,180 MW, sits immediately adjacent to the 493-acre Texas Critical Data Center site. That proximity is integral to the behind-the-meter power delivery model New Era pursues, which is designed to give data center operators more direct access to generation assets and reduce dependence on the broader transmission grid.

The scale of the Odessa facility relative to the contracted Phase 1 capacity leaves significant room for additional power arrangements at the site, consistent with provisions in a companion agreement the two companies also signed. New Era said it expects the contracted power to be available to the data center project in the third quarter of 2027. The agreement carries an initial 20-year term and includes automatic one-year renewal periods following its expiration.

What the Agreement Delivers for Tenants

Charlie Nelson, Chairman and Chief Executive Officer of New Era, framed the power agreement in terms of what it means for prospective tenants evaluating the site. The company now presents the Texas Critical Data Center as a project with land secured, construction permits in place, and electricity contracted for two decades. "Having firm, contracted power for Phase 1 in New Era's name is an incredible milestone which we believe materially reduces Phase 1 development risk at TCDC," Nelson said.

"With the land secured, construction permits in hand, Phase 1 power contracted for 20 years, and room to expand to multiple phases, we believe this is an attractive opportunity to any quality tenant currently in the market." Nelson characterized the outcome as transforming the site from a location with a power plan into what he described as permitted powered land. New Era's stated focus is on serving hyperscale, enterprise, and edge operators that require infrastructure capable of supporting artificial intelligence training and inference workloads.

A Companion Framework Extends the Relationship

Running alongside the power purchase agreement is a development framework agreement entered into by affiliates of both companies. The framework is intended to carry the New Era-Vistra relationship beyond Phase 1 and establishes pathways for advancing future power development both at the Texas Critical Data Center site and at other New Era projects. Under the terms of that agreement, Vistra will receive a 5% non-voting interest in the portion of the data center project to which it supplies power, with that interest commencing upon the start of power delivery.

Vistra also received a right of first refusal on future development opportunities at the TCDC project and a right of first offer on certain development opportunities at other New Era projects. Nelson said the partnership dimension of the deal carries particular significance for the company.

"Combining this PPA with a long-term partnership with Vistra is something of which we are particularly proud," he said. "We believe aligning our interests will expedite development timelines and give potential tenants confidence in our project."

Vistra's Position on Digital Infrastructure Demand

Claudia Morrow, Senior Vice President of Corporate Development and Strategy at Vistra, pointed to ongoing growth in demand for reliable power serving digital infrastructure across the United States as the context for the company's participation.

"We are pleased to work with New Era on a long-term power arrangement for the TCDC project and to establish a framework that allows us to evaluate additional power opportunities together over time," Morrow said. Vistra Corp. trades on the New York Stock Exchange under the ticker symbol VST. The company's contracting counterparty on the power purchase agreement is its affiliate Luminant ET Services Company LLC. New Era's announcement did not disclose the pricing terms of the agreement.

Scale and Scope of the Texas Critical Data Center

The Texas Critical Data Center is New Era's flagship development. The company has said it anticipates total site capacity will scale to 1.4 gigawatts over time, with the Vistra agreement covering Phase 1 in the range of 200 MW to 207 MW.

New Era describes its development model as modular and phased, using behind-the-meter power and self-generated electricity, with an emphasis on water efficiency and minimizing impact on surrounding communities. New Era Energy & Digital, Inc. is headquartered in Midland, Texas, and trades on the Nasdaq exchange under the ticker symbol NUAI. The company describes itself as a developer of next-generation digital infrastructure and integrated power assets across energy-rich U.S. markets.