The shale boom brought riches to Texas Pacific Land Corp. in the early aughts; today, artificial intelligence is doing the same.
The Dallas-based company’s stock has surged 230 percent this year, the Dallas Morning News reported. The jump to a market value of around $40 billion now exceeds Texas stalwarts such Halliburton as American Airlines,
Once established to manage land tied to failed 19th-century railroad ventures, the company’s 873,000 acres in the Permian Basin are now a cornerstone for AI-driven digital infrastructure. Specifically, the land is now being used for renewable energy projects, Bitcoin mining and the burgeoning demand for data centers.
“We feel that we’re positioned as well as anyone in West Texas to provide land and water solutions as those opportunities unfold,” Texas Pacific Land Corp. CEO Tyler Glover said during a recent investor call.
Much of the firm’s appeal lies in its access to cheap energy. The Permian Basin, a hub for natural gas, often sees negative prices as producers pay to offload excess supply. This dynamic positions Texas Pacific Land Corp.’s land as a cost-effective solution for data center operators seeking low-cost electricity.
Goldman Sachs projects U.S. data center power demand will jump 170 percent by 2030, fueled by AI technologies like OpenAI’s ChatGPT, which require vast energy resources.
Big Tech firms such as Google, Microsoft and Amazon, have already committed to spending over $200 billion on data centers and related infrastructure in 2025, according to Bloomberg data.
Texas Pacific Land Corp.’s holdings already generate nearly $100 million per quarter from royalties and an additional $80 million from water sales and fees.
Other companies that operate in the broader Permian Basin are also benefiting. For example, LandBridge Company, a 220,000-acre landowner, has seen its valuation soar as investors eye the region for its digital infrastructure potential.
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“This is the AI-adjacent pick and shovel trade,” said Kevin Simpson, CEO of Capital Wealth Planning. “These are not obscene valuations if the data center thesis plays out.”
— Andrew Terrell