LandBridge Co. LLC Announces Strategic Agreement with NRG Energy to Power Potential Texas Data Center
LandBridge Co. LLC (NYSE: LB), a prominent landowner and resource developer in the United States, confirmed a strategic partnership with NRG Energy (NYSE: NRG) to support a potential data‑center project in Reeves County, Texas. The agreement, announced on September 23, 2025, involves NRG constructing a 1,100‑megawatt power facility that would provide electricity to a data center planned for the Delaware Basin, an oil‑rich area within the Permian Basin.
Key Elements of the Agreement
| Item | Detail |
|---|---|
| Project location | Reeves County, Texas, Delaware Basin |
| Power capacity | Up to 1,100 megawatts |
| Parties involved | LandBridge Co. LLC (landowner) and NRG Energy (utility provider) |
| Purpose | Supply power for a potential data center |
| Financial impact | Expected to enhance LandBridge’s portfolio and diversify revenue streams |
LandBridge’s land holdings in the Delaware Basin position the company favorably for this development. The partnership leverages NRG’s experience in constructing large‑scale power facilities and LandBridge’s access to strategic acreage.
Market Reaction
Shares of LandBridge rose 6.2 % in pre‑market trading, closing at $55.40 on the New York Stock Exchange. The market view reflected confidence in the partnership’s potential to generate long‑term value. At the time of the announcement, LandBridge’s share price was $52.19 as of September 21, 2025, and the company’s market capitalization stood at $1.32 billion.
Strategic Implications
- Diversification – The data‑center power agreement represents a shift from LandBridge’s traditional focus on land and resource management to involvement in the emerging data‑center industry.
- Revenue Generation – The project could create new lease and power‑purchase revenue streams, potentially improving the company’s earnings profile.
- Energy Partnerships – Collaboration with a major utility like NRG aligns with broader industry trends toward renewable and reliable energy solutions for data‑center operations.
Company Background
LandBridge Co. LLC operates primarily in the United States, managing land and resources to support oil and natural gas development. The company’s assets and operations are listed on the New York Stock Exchange under the ticker LB. As of September 2025, LandBridge’s 52‑week high was $87.60 and its 52‑week low was $37.81. The price‑to‑earnings ratio was 68.17.
Conclusion
The strategic agreement with NRG Energy marks a significant step for LandBridge in expanding its business beyond traditional land and resource development into the data‑center energy sector. The partnership’s success will depend on the execution of the power facility and the eventual establishment of the data center in Reeves County.