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    How Data Center Expansion Will Impact Texas Pacific Land Stock

    Simply Wall St·10/24/2026 15:33:11
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    • Texas Pacific Land recently moved further into powering data centers through a partnership with Bolt Data & Energy and support for Chevron's Project Kilby using its acreage and water assets, while investors now look ahead to third quarter fiscal 2026 results that were scheduled for early November.
    • The push into data center energy and resource partnerships signals an attempt by Texas Pacific Land to build revenue streams that are less directly tied to traditional oil and gas activity on its Permian Basin land.
    • We will now examine how Texas Pacific Land's push into data center energy partnerships could reshape the longer term investment narrative.

    Scan for other data center and AI infrastructure beneficiaries with our hand-picked 55 AI infrastructure stocks that sit alongside Texas Pacific Land in powering the next leg of compute demand.

    Texas Pacific Land Investment Narrative Recap

    To own Texas Pacific Land, you need to be comfortable with a business still heavily linked to Permian Basin royalties and water services, while slowly layering on things like data center related partnerships. The near term swing factor is how third quarter 2026 results on November 4 reflect royalty volumes and water activity across its acreage.

    The key risk stays the same. If operator activity or regulatory pressure around oil, gas or water tightens, earnings could feel it quickly given the concentration in one region. The new data center push is interesting, but for now it does not materially change the short term risk reward mix.

    The move with Bolt Data & Energy and Chevron's Project Kilby gives you a concrete operational test case. Texas Pacific Land is offering land and water into emerging data center and transmission build out rather than only relying on drilling and disposal volumes. That matters because it shows how existing assets might be monetised in different ways.

    For catalysts, attention still gravitates to upcoming earnings and any commentary on how these data center related efforts could scale over time. Execution risk is real. Management has to prove these agreements translate into durable, contract like revenue without distracting from high margin core royalties and water services that currently underpin Texas Pacific Land's financial profile.

    Texas Pacific Land's current analyst model points to revenues of US$1.3b and earnings of US$837.1m by 2029. That profile assumes revenue growth of 17.2% per year and an earnings increase of about US$333.5m from US$503.6m today.

    Uncover how Texas Pacific Land's fair value indicates a 32% potential upside to its current price that could narrow quickly if sentiment shifts.

    NYSE:TPL 1-Year Stock Price Chart
    NYSE:TPL 1-Year Stock Price Chart

    Exploring Other Perspectives

    Some of the most optimistic analysts focus on Texas Pacific Land’s data center and power potential as the real catalyst. Before this partnership news, the bullish camp was already modeling about US$1.5b of revenue and US$949.3m of earnings by 2029. Those assumptions might shift, up or down, as this data center story evolves.

    Explore 5 other Texas Pacific Land fair value estimates, including one that suggests potential upside of as much as 121% from the current price!

    Form Your Own Verdict

    Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.

    Looking For More Ideas Beyond Texas Pacific Land?

    Once you have formed a view on Texas Pacific Land, it often helps to compare it with other opportunities that share similar quality markers or risk profiles. The Simply Wall St Screener can help you scan the wider market quickly so you can build a shortlist that matches your own criteria.