Area Highlights

• Booming Industries

  • Oil & Gas: Reeves County is consistently in the top one or two for rig counts, and the state’s largest producer of natural gas. With 66 active producers in Reeves County, Pecos ranks third in Texas for barrels of oil equivalent (BOE) produced.
  • Construction & Infrastructure: Driven by energy sector growth and public investment in water, wastewater, and emergency systems.
  • Retail & Hospitality: Supporting a growing population and workforce.
  • Agriculture: Historically known for cantaloupe farming and ranching.
  • Transportation & Warehousing: Enabled by proximity to major highways and regional logistics.
  • Healthcare & Education: Increasing demand as population expands.

• Strategic Location

  • Pecos sits in the heart of the Delaware Basin, one of the most prolific oil and gas regions in the world.
  • It’s the largest town between Midland-Odessa and El Paso, serving as a regional hub for commerce, logistics, and energy.

• Population & Workforce

  The West Texas region, which includes several basins such as the Permian Basin and parts of the Trans-Pecos area, most recent estimates site a population of approximately 630,000 to 650,000 people.

  • Projected job growth of 114.3% over the next decade.
  • Diverse employment base supporting long-term economic resilience.

• Business Incentives

  • Tax Abatements: 15-year term whereby 100% of city of Pecos and Reeves County are abated with 10 years remaining.
  • Chapter 380/381 Agreements: Rebates on property tax.
  • TIRZ Zones: Tax Increment Reinvestment Zones for redevelopment.
  • Workforce Development: Access to the Texas Skills Development Fund.
  • Small Business Support: Incubator funds and infrastructure grants.

• Data centers

  Pecos, Texas is emerging as a strategic location for high-density and hyper-scale data centers due to its abundant land, low-cost power, and favorable climate for energy-intensive operations. Two major developments in the area:

  LandBridge Data Center – planned for Reeves County

  • Massive Scale & Energy Backbone: LandBridgPece and NRG Energy are planning a 1.1 GW natural gas-fired power plant in Reeves County, Texas, to support a hyperscale data center. This is a direct response to ERCOT’s surging demand from AI clusters and data center expansions.
  • Location Advantage: The site is adjacent to the Waha natural gas hub in the Delaware Basin, giving it access to low-cost fuel and existing transmission infrastructure—critical for reliable, scalable energy delivery.
  • Permian Basin Synergy: LandBridge controls 277,000 surface acres in the Delaware sub-region, making it a key player in integrating digital infrastructure with traditional energy assets.
  • Timeline & Impact: If approved, the project could be operational by late 2029, aligning with ERCOT’s projected 10 GW peak demand growth from data centers alone.
  • Policy & Financing Support: Texas’s streamlined interconnection policies and the Texas Energy Fund’s low-interest loans are actively backing dispatchable generation projects like this one.
  • Core Scientific – Cottonwood 1 & 2 – Pecos, TX
    High-density data center operations, optimized for AI and compute-heavy workloads

• NATURAL GAS BUILDOUT IN PECOS, TEXAS

  Current Activity: There are 2 natural gas plants under construction with 4 additional projects in the pipeline.

  Estimated Cost: Each plant is projected to cost approximately $300 million, aligning with industry estimates for mid-scale dispatchable generation facilities.

  Purpose: These plants are being developed to meet the explosive demand from AI data centers, industrial electrification, and population growth across Texas.

  Statewide Context: Texas has over 100 proposed gas-fired power plants, totaling 58 GW of new capacity. More than 60 projects aim to be completed by 2028, with Reeves County emerging as a key hotspot.

  Support Mechanisms: The Texas Energy Fund is backing these developments with $7.2 billion in low interest loans to accelerate dispatchable generation.

• Infrastructure Investments

  Reeves Regional Hospital: located directly across the street from the property in Reeves County

  • a Level IV trauma center located in Pecos, Texas – plays a vital role in serving not just Reeves County but also surrounding rural communities in West Texas.

  
  Infinium Jet Fuel Plant (Project Roadrunner)

  • Backers: Brookfield Asset Management ($1.1B commitment) and Breakthrough Energy Catalyst ($75M)
  • Technology: Produces eSAF (electro-sustainable aviation fuel) using water, waste CO₂, and renewable energy and reduces lifecycle emissions by 90%+ compared to conventional fuels
  • Offtake Agreement: American Airlines will begin purchasing fuel in 2026, securing commercial volumes from the site.

  This plant is a cornerstone of the region’s push toward low-carbon industrial transformation, especially as aviation and logistics sectors seek scalable decarbonization.

  Blackstone Acquisition of TNMP (Texas-New Mexico Power)

  • Deal Size: $11.5 billion
  • Acquirer: Blackstone Infrastructure
  • Target: TXNM Energy, parent of TNMP
  • Purpose: To support electric grid expansion and data center growth across Texas
  • Local Impact: TNMP will remain locally managed, with commitments to infrastructure investment and grid reliability

  This acquisition aligns with the surging demand from hyperscale data centers, including those in Pecos and Reeves Counties, and ensures long-term capital for transmission and distribution upgrades.

  OXY Carbon Capture Facility (STRATOS) – Ector County, ~35 miles west of Odessa

  • Investment: $1.3 billion
  • Technology: Direct Air Capture (DAC) via subsidiary 1PointFive
  • Capacity: 500,000 metric tons of CO₂ annually
  • Partners: BlackRock ($550M joint venture investment)
  • Use Cases: CO₂ stored underground or used for enhanced oil recovery
  • Carbon Credit Buyers: Amazon, Microsoft, JPMorgan, Airbus, AT&T, Houston Astros, and more

  STRATOS is the world’s largest DAC facility, positioning West Texas as a global leader in carbon management and climate tech.