US-based New Era Energy & Digital, through its subsidiary TCDC PowerCo, has entered into a 20-year power purchase agreement (PPA) with Luminant ET Services, an affiliate of Vistra.
The contract will see Luminant supply a minimum of 200MW and up to 207MW of electricity for phase one of New Era’s Texas Critical Data Center (TCDC) project near Odessa, Texas.
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Under the agreement, Luminant will deliver power from Vistra’s 1.18GW natural gas-fired facility, which is adjacent to the planned data centre site.
The firm supply is scheduled to be available starting in the third quarter of 2027.
The contract contains automatic one-year renewal periods after the initial 20-year term, provided neither party opts out.
According to New Era, the agreement is intended to secure power for the first phase of its data centre project and support its long-term development plans.
New Era chairman and CEO Charlie Nelson said: “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.
“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.”
Luminant’s obligations under the new PPA are contingent upon several conditions, including New Era’s provision of credit support.
This includes a letter of credit for $116m to be posted within 15 business days and additional security up to $82.8m before the delivery date.
The contract also contains standard terms including events of default, force majeure provisions, indemnification and insurance requirements.
In a concurrent move, New Era and Vistra signed a development framework agreement to explore future power development at the Odessa site and other locations.
The agreement gives Vistra a 5% non-voting equity interest in the project segment it supplies. It also grants Vistra a right of first refusal for future on-site power expansion and a right of first offer for certain future projects over the next five years.
Vistra corporate development and strategy senior vice-president Claudia Morrow said: “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.”
New Era’s obligations also include reimbursing Vistra for certain construction costs related to substations and transmission lines, subject to further agreements.
