LandBridge and PowerBridge Forge Major West Texas Data Center Partnership April 2, 2026 In a significant move to address the surging power and space demands of the artificial intelligence and cloud computing era, infrastructure firm LandBridge and data center developer PowerBridge have announced a strategic partnership to develop a massive, power-integrated data center campus in West Texas. The deal highlights a growing industry trend of siting hyperscale facilities near abundant energy resources to secure scalable and cost-effective power. Under a lease development agreement announced this week, PowerBridge has secured the option to lease approximately 3,400 acres of land in Reeves County, Texas, from NYSE-listed LandBridge. The planned Alpha Digital Campus is designed for an initial capacity of up to 2 gigawatts (GW), supported by co-located power generation infrastructure developed by PowerBridge and its partners. Both companies share a common investor, private equity firm Five Point Infrastructure, which has approximately $8 billion in assets under management and established both entities. LandBridge, formed in 2021, owns a vast portfolio of about 320,000 surface acres across Texas and New Mexico, primarily in the Permian Basin. The company has identified roughly 25,000 acres of its owned land as suitable for data center development, representing a potential total capacity of 18GW. PowerBridge, led by industry veteran Alex Hernandez, was formed last year specifically to develop large-scale data center campuses on LandBridge land. Jason Long, CEO of LandBridge, stated, “This new agreement with PowerBridge represents a catalyst for executing on the West Texas data center thesis with a proven developer.” He cited the region's vast contiguous land, attractive natural gas dynamics, significant water availability, and favorable grid outlook as key enablers for meeting growing data center demand. PowerBridge CEO Alex Hernandez added, “We are excited to partner with LandBridge in advancing our powered campus development strategy, which integrates energy and digital infrastructure.” He emphasized that the company’s “pad-ready” campuses are designed to meet the pace and scale requirements of hyperscale customers. PowerBridge has already filed its Generation Interconnection Request for the power facilities and ordered long-lead-time equipment for the necessary infrastructure. The first power delivery for the Alpha Digital Campus, located near the Waha natural gas hub, is anticipated in 2027, with large-scale generation expected to follow in 2028, pending regulatory and commercial processes. This project underscores a strategic shift in data center site selection, prioritizing regions with direct access to energy generation to support multi-gigawatt deployments. Source: datacenterdynamics
LandBridge and PowerBridge Partner to Develop 2-Gigawatt Data Center Campus in West Texas
