Vistra is exploring two options for contracting with data centers: long-term power-purchase agreements and co-location arrangements. Both options face hurdles, as seen in Amazon's stalled co-location deal with Talen Energy due to Federal Energy Regulatory Commission concerns. In Texas, potential legislation could require energy companies with co-location deals to generate additional power for the local grid. Despite these challenges, Vistra remains optimistic about reaching agreements with major data center developers and hyperscalers.
Key takeaways:
- Vistra's stock fell 11% despite reporting better-than-expected fourth-quarter earnings, due to regulatory hurdles delaying deals with data centers.
- The company is in talks to power data centers with its nuclear fleet, but no major deals have been announced yet.
- Vistra has signed power purchase agreements with Amazon and Microsoft for its solar facilities, but faces challenges in finalizing nuclear power deals.
- Regulatory issues, such as those faced by Talen Energy, highlight the complexities and hurdles in securing co-location agreements with data centers.