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NextEra Energy (NYSE: NEE) and Lewis Energy Group are spearheading the development of Project Star, a $22.3 billion natural gas-powered energy campus in Encinal, Texas, designed to power a major data center and supply the grid.
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The campus will feature 6.47 gigawatts of generation capacity, with initial operations projected for 2029, creating thousands of jobs.
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Despite robust financial performance, including $7.53 billion in revenue and a 29.5% operating profit margin, analyst firm Seaport Global maintains a “Sell” rating on NextEra Energy, setting a price target of $56.00.
NextEra Energy (NYSE: NEE) and Related Companies are selected to develop Project Star, a $22.3 billion natural gas-powered energy campus in Encinal, Texas, with Lewis Energy Group, as highlighted by PR Newswire. NextEra develops and operates energy projects. This campus is designed to supply a nearby data center, with excess electricity delivered to the grid.
The planned campus has 6.47 gigawatts of generation capacity, mainly for an adjacent, privately funded 5-gigawatt data center campus. A gigawatt is a measure of power output. NextEra Energy Resources and Related plan to develop, build and operate the power campus, while Lewis Energy provides land, natural gas and related infrastructure.
Construction is expected to take place in phases. Initial generation could come online as early as 2029, subject to permits and approvals. The project could support about 8,400 jobs at peak construction and approximately 170 permanent jobs once operational. NextEra says the added supply is intended to serve new demand while supporting grid reliability.
The scale of the plan is significant for a company with $170.45 billion in net property, plant and equipment, which includes long-term physical assets. In its latest reported quarter, NextEra records $7.53 billion in revenue, $1.37 billion in cost of revenue and $6.16 billion in gross profit. Its operating expenses are $3.92 billion, and its operating profit margin is 29.5%.
Seaport Global maintains a Sell rating on NextEra Energy, although the update lists its action as hold. Analyst Angie Storozynski raises her price target to $56.00 from $55.00. At the update’s $77.38 share price, the stock trades about 27.6% above that target. A price target is an analyst’s estimate of where a stock may trade.
