---
title: "NRG Energy targets a year-end signature on a $3.2 billion Texas data-center plant; the customer is unnamed"
description: "CEO Robert Gaudette says terms are agreed on the 1.2-gigawatt Bring Your Own Power deal even as Texas' governor-elect presses a data-center moratorium; NRG is funding buybacks by selling 4.9 gigawatts of operating plants at eight times earnings while the growth project waits on ink."
publisher: "The Inference"
section: "Power"
published: 2026-11-10T14:19:04.449Z
modified: 2026-11-10T14:19:04.449Z
canonical: https://theinference.org/article/nrg-energy-targets-a-year-end-signature-on-a-3-2-billion-texas-data-center-plant-the-customer-is-unnamed
language: en
keywords: "NRG Energy, Data Centers, Power, Natural Gas, Texas, ERCOT"
---

# NRG Energy targets a year-end signature on a $3.2 billion Texas data-center plant; the customer is unnamed

> CEO Robert Gaudette says terms are agreed on the 1.2-gigawatt Bring Your Own Power deal even as Texas' governor-elect presses a data-center moratorium; NRG is funding buybacks by selling 4.9 gigawatts of operating plants at eight times earnings while the growth project waits on ink.

## Terms are agreed, the signature is the target

On Monday's third-quarter call, [NRG Energy](https://theinference.org/markets/companies/nrg-energy) chief executive Robert Gaudette answered the question investors have asked since August: when does the unnamed hyperscaler sign? "This project is going to happen," he said. Management has agreed on terms with the customer and is [targeting a definitive agreement by year-end](https://www.bullished.co/nrg-ceo-says-political-turnover-favors-its-1-2-gigawatt-texas-data-center-project-1c8d4a31/), and it is negotiating with the same customer to [expand the Texas site to up to 2.4 gigawatts](https://cryptobriefing.com/nrg-energy-data-center-pipeline-expansion/) [1][2].

The economics carry the argument. The 1.2-gigawatt gas plant, part of NRG's [Bring Your Own Power program](https://theinference.org/article/a-company-with-no-tenant-signed-a-20-year-power-bill-and-its-stock-jumped-30), is expected to cost $3.2 billion and produce about $500 million of annual adjusted EBITDA and $375 million of free cash flow at full operation [2]. Capacity payments cover roughly 95% of that free cash flow whether or not the data center draws power, putting the demand risk on the customer, not NRG [2].

The contract runs at least 15 years with an investment-grade guarantee, operations are targeted for late 2029, and the project won conditional inclusion in ERCOT's Batch Zero interconnection process on September 8 [2].

*Chart: **NRG sold 4.9 GW of operating plants while holding a 5.4 GW new-build pipeline** Bar chart of capacity in gigawatts: NRG's 2026 BYOP contracting target 1 GW, initial Texas project 1.2 GW, same-site expansion talks 2.4 GW, plants sold to LS Power 4.9 GW, secured turbine and EPC pipeline 5.4 GW.*

*Generation capacity in gigawatts. Targets and in-negotiation expansion shown as estimates; sale and secured pipeline as reported. Sources: Crypto Briefing, November 9, 2026; NRG Energy press release, November 9, 2026. [2][3]*

## Selling megawatts while the growth case waits

The same day, NRG agreed to [sell six gas plants, just under 4.9 gigawatts, back to LS Power for $4 billion](https://www.nrg.com/en/about/newsroom/2026/46141), an implied 8.0 times expected 2027 adjusted EBITDA [3][4]. Gaudette called the offer unsolicited and put Jack County's implied value at about $1,400 per kilowatt, against roughly $1,000 per kilowatt to build new Texas capacity [3][4]. Proceeds go to $2 billion of debt reduction, $1 billion of added buybacks within a $3 billion repurchase plan across 2026 and 2027, and $1 billion for growth or further paydown [3].

*Chart: **Half the $4 billion goes to debt, a quarter to buybacks** Pie chart splitting NRG's $4 billion of sale proceeds: $2 billion debt reduction, $1 billion added buybacks, $1 billion growth or further paydown.*

*Planned uses of the $4 billion in proceeds from the LS Power sale, as stated by NRG. Source: NRG Energy press release, November 9, 2026 [3]. [3]*

The quarter was strong: [adjusted EPS of $4.68 beat estimates by $1.65](https://www.msn.com/en-us/money/economy/nrg-energy-gains-after-earnings-beat-4-billion-sale-sharpens-buyback-and-debt-plans/ar-AA2h59FY), revenue rose 24% to $9.47 billion, and adjusted EBITDA reached $2.01 billion [5]. But 2027 guidance, midpoints of $9.05 EPS and $5.75 billion EBITDA, excludes the sale [5], and the project's $721 million slice of the 2026 capital plan still awaits a financing partner, ideally by year-end, with equity ruled out [1]. [Shares rose more than 6% pre-market](https://seekingalpha.com/news/4668872-nrg-energy-to-sell-six-gas-generation-assets-to-ls-power-in-4b-deal) on the news [6].

*Chart: **Revenue jumped 24% year over year in the quarter the deal news broke** Line chart of NRG Energy quarterly revenue from the second quarter of 2024 to the third quarter of 2026, rising from $6.7 billion to $9.5 billion with a dip in mid-2025.*

*Revenue in billions of US dollars by calendar quarter, from NRG's SEC filings. Q3 2026's $9.47 billion is up 24% year over year. Source: NRG Energy SEC filings [9]. [9]*

## The politics Gaudette is betting against

Analysts at [Barclays](https://theinference.org/markets/companies/barclays), [BNP Paribas](https://theinference.org/markets/companies/bnp-paribas) and [Morgan Stanley](https://theinference.org/markets/companies/morgan-stanley) have [trimmed targets on data-center opposition and policy risk](https://finance.yahoo.com/markets/stocks/articles/nrg-energy-nrg-stock-sees-032651283.html) [8]. Texas governor-elect Gina Hinojosa [has called for a moratorium on data-center approvals](https://www.msn.com/en-us/news/other/gina-hinojosa-won-the-governor-s-race-what-happens-to-texas-data-centers-now/ar-AA2gL2R4) until the Legislature passes protections, and Governor Abbott froze grid connections and environmental permitting in August pending an audit [7]. Gaudette argues turnover helps: incoming officials want community say, protected water supplies and lower bills, and NRG will build where it is welcome [1]. The year-end signature, the financing partner and final ERCOT approval are the tells to watch [1][2].

## Takeaway

NRG has terms agreed on a $3.2 billion, 1.2-gigawatt Texas gas plant for an unnamed hyperscaler and targets a signature by year-end, while it sells 4.9 gigawatts of operating plants to LS Power for $4 billion to fund buybacks and debt paydown as Texas politics cloud the outlook.

## Sources

1. [Bullished, NRG CEO Says Political Turnover Favors Its 1.2-Gigawatt Texas Data-Center Project, 10 November 2026](https://www.bullished.co/nrg-ceo-says-political-turnover-favors-its-1-2-gigawatt-texas-data-center-project-1c8d4a31/)
2. [Crypto Briefing, NRG Energy in talks to expand data center pipeline beyond 1.2 GW, 9 November 2026](https://cryptobriefing.com/nrg-energy-data-center-pipeline-expansion/)
3. [NRG Energy press release, NRG Energy Announces $4 Billion Asset Sale, 9 November 2026](https://www.nrg.com/en/about/newsroom/2026/46141)
4. [Power Engineering, NRG Energy to sell 4.9 GW of gas generation back to LS Power in $4B portfolio shakeup, 9 November 2026](https://www.power-eng.com/business/nrg-energy-gas-generation-ls-power-sale/)
5. [Benzinga via MSN, NRG Energy gains after earnings beat, $4 billion sale sharpens buyback and debt plans, 9 November 2026](https://www.msn.com/en-us/money/economy/nrg-energy-gains-after-earnings-beat-4-billion-sale-sharpens-buyback-and-debt-plans/ar-AA2h59FY)
6. [Seeking Alpha, NRG Energy to sell six gas generation assets to LS Power in $4B deal, 9 November 2026](https://seekingalpha.com/news/4668872-nrg-energy-to-sell-six-gas-generation-assets-to-ls-power-in-4b-deal)
7. [The Texas Tribune via MSN, Gina Hinojosa won the governor's race. What happens to Texas data centers now?, 4 November 2026](https://www.msn.com/en-us/news/other/gina-hinojosa-won-the-governor-s-race-what-happens-to-texas-data-centers-now/ar-AA2gL2R4)
8. [Yahoo Finance / Simply Wall St, NRG Energy (NRG) Stock Sees Modest Fair Value Cut As Analyst Targets Reset, 5 November 2026](https://finance.yahoo.com/markets/stocks/articles/nrg-energy-nrg-stock-sees-032651283.html)
9. [NRG Energy, quarterly figures from its SEC filings, retrieved 10 November 2026](https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001013871)


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NRG Energy targets a year-end signature on a $3.2 billion Texas data-center plant; the customer is unnamed — The Inference. Canonical: https://theinference.org/article/nrg-energy-targets-a-year-end-signature-on-a-3-2-billion-texas-data-center-plant-the-customer-is-unnamed