Key Highlights
- NUAI shares surged 16% on Monday following the announcement of a two-decade power supply contract with a Vistra subsidiary.
- The agreement calls for Luminant to deliver 200 MW to 207 MW of electricity for the initial phase of New Era’s Texas data center campus.
- Electricity supply is projected to commence in Q3 2027.
- Upon commencement of power delivery, Vistra will acquire a 5% non-voting equity stake in the project segment it serves.
- The company’s Texas property spans 493 acres with potential expansion to 1.4 GW of total capacity.
New Era Energy & Digital (NUAI) shares climbed 16% during Monday’s trading session following the disclosure of an extensive power supply arrangement with Vistra. The stock had settled at $5.86 on Friday, marking a 0.86% gain for that day.
New Era Energy & Digital, Inc., NUAI
The power supply arrangement addresses the initial development phase of New Era’s Texas Critical Data Center facility. Under the terms, contracted power capacity ranges from 200 MW to 207 MW.
Luminant ET Services Company, operating as a Vistra affiliate, will serve as the electricity provider. The arrangement establishes a 20-year baseline term with provisions for successive annual extensions.
Electricity availability is anticipated during Q3 2027. According to New Era, securing power under its own contractual authority provides direct oversight of Phase 1 energy requirements.
Long-Term Power Contract Addresses Phase 1 Requirements
The electricity supply will originate from Vistra’s natural gas generation plant in Odessa, Texas, rated at 1,180 MW capacity. This facility is located directly adjacent to the planned data center campus.
Charlie Nelson, serving as New Era’s Chairman and CEO, indicated the arrangement mitigates developmental uncertainties for the project’s first phase. The organization has already secured property rights and necessary construction authorizations.
The Texas Critical Data Center occupies approximately 493 acres within the Permian Basin region. New Era projects the location could ultimately support roughly 1.4 GW of operational capacity.
The power purchase agreement represents just one component of the broader collaboration between the two entities. New Era and Vistra have also established a development framework addressing potential future ventures.
Following the initiation of electricity delivery, Vistra will obtain a 5% non-voting ownership position in the data center segment receiving contracted power.
Vistra has also secured preferential rights regarding future expansion opportunities at the Texas location. Additionally, the company holds first-offer rights on specific prospects related to other New Era developments.
Broader Development Strategy for Texas Campus
The contractual arrangement provides New Era with a confirmed electricity source for its inaugural construction phase. Access to reliable power has emerged as a critical factor for organizations constructing large-scale data center facilities.
New Era is focusing on AI training and inference computing workloads for the Texas facility. The development strategy emphasizes staged construction rather than simultaneous buildout of maximum planned capacity.
Claudia Morrow, a Vistra executive, noted that requirements for reliable electricity supporting digital infrastructure continue expanding throughout the country. She emphasized the framework enables both organizations to explore additional power-related opportunities going forward.
NUAI shares had demonstrated significant volatility prior to Monday’s announcement. The stock appreciated 22% on September 8 before retracing a portion of those gains in subsequent trading sessions.
Friday’s closing price of $5.86 exceeded the September 1 closing level of $4.85. Trading volume on Friday totaled approximately 8.4 million shares.
The most recent confirmed development schedule indicates Vistra’s contracted electricity will become accessible in Q3 2027. The initial arrangement encompasses up to 207 MW, while New Era advances planning for subsequent phases across the 493-acre property.
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