The company, which was founded in 1888, earns money from oil and gas royalties, leasing land to drillers, handling wastewater disposal, and selling water to frackers. It has recently expanded to accommodate bitcoin mines and renewable power projects. With the increasing demand for data centers, which require massive amounts of space and power, Texas Pacific Land's vast acreage adjacent to a source of cheap and abundant energy is seen as prime real estate.
Key takeaways:
- Texas Pacific Land Corp.'s stock has surged 198% this year, with investors betting on its land being crucial for data center buildouts amidst the AI boom.
- The company owns 873,000 acres of land in the Permian Basin, an oil and gas hotspot in West Texas, which is also home to bitcoin mines, renewable power assets, and large batteries.
- Data centers require a massive amount of space and power to operate, and Texas Pacific Land's sprawling acreage adjacent to a source of cheap and abundant energy is seen as prime real estate for tech giants like Alphabet, Microsoft, Amazon, and Meta.
- Texas Pacific Land Corp. earns money from oil and gas royalties, leasing land to drillers, handling wastewater disposal, and selling water to frackers, and has recently expanded to accommodate bitcoin mines and renewable power projects.