A new gigawatt-scale data center firm has launched in the US.
Five Point Infrastructure LLC (formerly known as Five Point Energy) this week announced the formation and funding of PowerBridge LLC.
Launched with an equity commitment of up to $1 billion, PowerBridge will focus on developing, building, and managing gigawatt-scale data center campuses, associated power infrastructure, and fiber network connectivity throughout North America.
PowerBridge is led by founder and CEO Alex Hernandez. He was previously CEO of energy firm Talen and founded its Cumulus Data data center subsidiary, which was sold to Amazon.
Hernandez said: “We are excited to partner with Five Point to capitalize on this generational moment in the growth and convergence of energy and digital infrastructure. With Five Point’s institutional support, our collective energy infrastructure, power operations, data center development, and fiber experience, and the significant additional value that other Five Point portfolio companies can bring for customers, we look forward to providing hyperscale customers with turnkey data center campus solutions at scale.”
PowerBridge will build its data center parks in locations controlled by property manager LandBridge, another Five Point-backed company, as well as on other sites. Details on any planned data centers were not shared.
The company said it plans to partner with power companies such as NRG Energy to build new (mostly gas) power plants. The campuses will reportedly use gas that energy companies might otherwise have to burn off on-site and will also recycle water expelled by oil and gas wells.
Founded in 2012, Texas-based Five Point Infrastructure is a private equity and infrastructure investor focused on investments within North America. The firm has approximately $8 billion of assets under management across multiple investment funds.
Through affiliate land management company LandBridge, Five Point said PowerBridge will have access to more than 275,000 acres of land for development, as well as “direct access to low-cost natural gas” via the Waha Hub, a key pipeline intersection located in Pecos County, Texas.
Five Point said PowerBridge will also work with sister company WaterBridge, a midstream water management company in the Delaware Basin. Five Point’s Northwind Midstream, an operator of gas-treating and carbon-storage systems, will also work with the new firm.
David Capobianco, CEO and managing partner of Five Point, said: “The formation of PowerBridge adds another important component to our powered land strategy. Together with Landbridge, WaterBridge, our deep institutional relationships and track record of building critical infrastructure companies, PowerBridge is well-positioned to create best-in-class data, power, and fiber solutions for data center customers.”
Capobianco continued: “Alex and his team transformed the power and data center industries with the Cumulus project, and we firmly believe this experience, combined with our resources, will redefine the digital infrastructure landscape once again by providing a differentiated, integrated, and competitive solution at multi-gigawatt scale.”
Formed in 2021 by Five Point, New York Stock Exchange-listed LandBridge owns approximately 277,000 surface acres across Loving, Winkler, Reeves, Pecos, and Andrews Counties in Texas, as well as Lea County, New Mexico, located primarily in the heart of the Delaware sub-region in the Permian Basin.
