LandBridge Company LLC (NYSE: LB) (“LandBridge”) today announced the execution of a definitive agreement providing for the development of a data center and related facilities on approximately 2,000 acres of its land in Reeves County, Texas. The counterparty to the agreement is a joint venture between a third-party developer and funds affiliated with LandBridge’s financial sponsor, Five Point Energy LLC. The lease development agreement includes, among other things, a non-refundable $8.0 million deposit due in December 2024 for a two-year site selection and pre-development period. The counterparty is obligated to meet certain timing milestones to maintain its lease, to include the commencement of site development within a two-year period and construction of the data center within a subsequent four-year period. Upon initiation of construction of a data center, the counterparty will make escalating annual lease payments along with additional payments based on the net revenue received with respect to the power generation facilities to be located on the leased property.
The terms of the lease development agreement and related transactions were unanimously approved by the Conflicts Committee of LandBridge’s Board of Directors (the “Board”), composed solely of independent directors, acting on behalf of the Board.
