TPL Expands Data Center Footprint With Project Kilby Agreement in Texas, TPH Energy Says
Texas Pacific Land (TPL) agreement to provide land and water solutions for Chevron's (CVX) Project Kilby development marks another step in West Texas data center expansion, though meaningful revenue may not arrive before 2028, TPH Energy said in a Wednesday note.The company announced Tuesday that it will provide land for cash consideration and grant exclusive rights to source aquifer-derived water for a power generation facility and related infrastructure at the Reeves County, Texas, project.Chevron's participation and Microsoft's (MSFT) role as data center operator strengthen the project's profile, although the agreement appears to overlap with land and water supply arrangements disclosed alongside first-quarter 2026 earnings, the note said.Previous partner disclosures pointed to a final investment decision by the end of 2026, with developers planning to invest over multiple years before delivering the first power from the project in 2028, according to TPH Energy.The water supply agreement is unlikely to generate a meaningful financial contribution until at least 2028 because the project still faces a lengthy development and construction timeline.TPH Energy views the latest deal as evidence that West Texas data center projects continue to advance and expects TPL to remain involved in future developments.Price: $372.00, Change: $+2.10, Percent Change: +0.57%
