Texas Pacific Land to Sell Reeves County Assets for Data-Center Power Hub
The landowner will supply land and brackish water for Chevron’s giga-watt power plant in exchange for cash and exclusive water-sourcing rights.
**Texas Pacific Land Corporation (TPL)** agreed to sell land and water rights in Reeves County, Texas, to support a large-scale power generation facility for a customer data center, the company said. The asset-purchase transaction will provide TPL with cash consideration and exclusive water-sourcing rights for the project.
The deal centers on TPL’s role as a critical infrastructure provider for Chevron’s giga-watt power plant, which will supply electricity to a data center in West Texas. While financial terms, including the deal value, were not disclosed, the arrangement mirrors TPL’s recent push into high-value land and water assets tied to energy-intensive compute infrastructure.
“This advancement of giga-watt scale power generation and data centers developed by the industry’s leading technology, energy, and industrial companies validates West Texas as a premier location for compute infrastructure,” said Ty Glover, CEO of TPL. The company framed the transaction as a validation of its strategy to monetize its nearly 882,000-acre portfolio through long-term agreements with hyperscalers and industrial partners.
TPL’s land and water assets have become increasingly strategic as demand for power-hungry data centers surges in the Permian Basin. In May 2026, the company reported a $42.5 million land sale tied to a separate power-generation and data-center project, alongside a water-supply agreement for the facility. That deal followed a December 2025 strategic partnership with Bolt Data & Energy, in which TPL invested $50 million to develop large-scale data-center campuses on its land.
The Reeves County transaction underscores TPL’s pivot from traditional oil-and-gas royalties toward higher-margin infrastructure plays. The company’s first-quarter 2026 results highlighted record revenue from land sales and water services, driven by rising demand for power-generation sites and treated water. TPL’s produced-water desalination test facility in Orla, Texas, is expected to further bolster its water-sourcing capabilities for industrial and data-center customers.
Regulatory and closing conditions were not disclosed, but the deal aligns with TPL’s broader strategy to secure long-term cash flows from non-traditional revenue streams. The company’s board has emphasized continuity in its quarterly cash dividend, which was last paid at $0.60 per share in March 2026.