The company's data ambitions are fueled by the expected increase in data center power demand in the U.S., which could grow by approximately 160% by 2030, accounting for nearly a tenth of the country's energy usage. This has led to a surge in demand for natural gas, which is cheapest in West Texas. TPL, which collected almost $100 million in oil and gas royalties last quarter, is well-placed to manage this demand. The company's stock recently jumped 14% after it was announced that TPL would replace Marathon Oil in the S&P 500.
Key takeaways:
- Texas Pacific Land Corporation, founded in 1888, is exploring ways to make money from its 873,000 acres of land, including luring renewable power projects, bitcoin mines, and utility-scale battery production.
- The company is also considering the possibility of data centers, which has helped triple its stock price in the past year.
- Big Tech companies like Google-parent Alphabet, Microsoft, Amazon, and Facebook-parent Meta may spend more than a combined $200 billion next year amid the AI arms race, potentially increasing data center power demand in the U.S. by roughly 160% by 2030.
- Texas Pacific Land Corporation's stock jumped 14% after the announcement that it would replace Marathon Oil in the S&P 500, although it has since fallen over 10% to trade around the $1,550 mark.