Texas Pacific Land Corp. (TPL) announced a strategic partnership with Bolt Data & Energy, Inc., a data‑center and energy infrastructure company co‑founded by former Google CEO Eric Schmidt. Under the agreement, Bolt raised $150 million in capital, of which TPL invested $50 million. In return, TPL will receive an equity stake, warrants, and a right of first refusal to supply water to Bolt‑affiliated projects, creating a new counter‑cyclical revenue stream tied to the growing data‑center market.
The partnership leverages TPL’s 882,000 acres of Permian Basin land and its extensive water‑services infrastructure, positioning West Texas as a prime location for AI‑driven compute hubs. West Texas offers abundant natural‑gas‑fueled power, a supportive regulatory environment, and a skilled workforce, all of which are critical for large‑scale data‑center operations. By monetizing its land and water assets beyond oil and gas royalties, TPL aims to diversify its revenue base and capture a share of the high‑growth AI infrastructure sector.
Bolt’s $150 million capital raise reflects confidence in the data‑center market, while TPL’s $50 million investment signals strong belief in the partnership’s upside. The equity stake and warrants give TPL upside participation in Bolt’s future growth, and the water‑supply right ensures a reliable, cost‑effective resource for data‑center cooling and power generation. The deal is structured to align incentives and provide a long‑term, counter‑cyclical income stream for TPL.
TPL’s recent financial performance underscores the strategic fit of the partnership. In Q3 2025, the company reported revenue of $203.1 million and net income of $121.2 million, but EPS of $5.27 fell short of the $5.69 consensus estimate. The miss was largely driven by higher operating costs and a modest decline in royalty income, while strong cash generation and a current ratio of 10.86 provide a solid foundation for new capital‑intensive ventures. The partnership is expected to offset the cyclical nature of TPL’s core royalties with a more stable, technology‑driven revenue stream.
Management emphasized the strategic rationale behind the deal. Eric Schmidt, Bolt’s chairman, said the collaboration would “fuel the Fourth Industrial Revolution” by combining abundant energy production with scalable data‑center infrastructure. Ty Glover, TPL’s CEO, highlighted West Texas’s attributes—energy abundance, water availability, and a supportive regulatory climate—as key enablers for becoming a global AI compute hub. The partnership signals TPL’s commitment to long‑term growth beyond traditional oil and gas royalties.
The market viewed the partnership positively, reflecting confidence in TPL’s diversification strategy and the growing demand for AI infrastructure. Investors noted the alignment of TPL’s land and water assets with Bolt’s data‑center ambitions, and the partnership’s potential to generate counter‑cyclical cash flow in a high‑growth sector.
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