A land company in the USA, established over 130 years ago, has surprisingly become a beneficiary of the AI boom - $Texas Pacific Land (TPL.US)$ The stock has risen by as much as 210% this year.

Previously, the S&P Dow Jones Index announced the inclusion of TPL in the S&P 500 index, replacing marathon oil which was acquired by conocophillips. TPL's total market capitalization is close to 40 billion dollars, surpassing condiment giant the kraft heinz and Yum! Brands, the parent company of KFC.

TPL's 210% increase this year also ranks among the top in the S&P 500 index components. As of the report, only power generation companies have outperformed this growth (+300%) along with defense technology stocks in the USA. $Vistra Energy (VST.US)$ and stocks in the USA. $Palantir (PLTR.US)$ （+280%）。

According to the official website, Texas Pacific Land Corporation's predecessor was Texas Pacific Land Trust, founded in 1888, currently one of the largest landowners in Texas, with only about 100 employees.

TPL stated in a press release that it owns approximately 0.873 million acres of land, mostly concentrated in the oil and gas-rich Permian Basin. The company is not an oil and gas producer, but its "surface and royalty usage fees can provide revenue opportunities throughout the entire life cycle of oil wells".

Source: TPL Official Website

According to media reports, TPL's land has begun to build bitcoin mines, battery and renewable energy projects on a utility scale. Some analysts believe that "natural gas there is almost free," which could be a huge opportunity for companies like Microsoft, Amazon, and others to potentially become a source of cheap electricity for data centers.

TPL CEO Tyler Glover mentioned in a conference call, "Industry insiders are discussing leasing land to data centers extensively, as is the case internally at TPL. With these opportunities arising, we have the capability to provide land and water resource solutions similar to companies in West Texas."

Currently, tech giants are investing in artificial intelligence infrastructure. According to compiled media data, Alphabet, Microsoft, Amazon, and Meta Platforms are expected to invest over $200 billion next year, with the majority earmarked for building data centers.

Research director Greg Halter of Carnegie Investment Advisory Firm stated, "Many different industries will be impacted by AI investments. This will make some 'quirky entities' active, as these companies suddenly have something valuable."

TPL's assets became very valuable during the 'shale oil revolution,' with the company now receiving nearly $0.1 billion in royalties quarterly from energy giants like Exxon Mobil, Chevron, and ConocoPhillips. The company's Q3 adjusted EBITDA profit margin reached 83%.

Source: TPL Official Website

Another company similar to TPL is LandBridge, which owns around 0.22 million acres of land in the Permian era, with its stock price more than tripling since the June IPO. LandBridge's latest plan is to expand its land area by 20%, citing the potential for 'digital infrastructure and renewable energy projects.'

Among the S&P components, Vistra Energy, Palantir, GE Vernova, and Nvidia, closely related to AI, are leading in gains. Companies providing natural gas to power plants are also performing well, with Kinder Morgan and Oneok seeing gains of over 50% year-to-date.

Capital Wealth Planning LLC, which manages 11 billion US dollars in assets, has invested in TPL's stocks. CEO Kevin Simpson said, 'These are all trades related to artificial intelligence. If the theory of data centers works, the valuation of these companies is not considered high.'

TPL CEO Glover said it's premature to say TPL's land will soon have a large data center. But he pointed out that the company is in a prime position to benefit from the expansion of artificial intelligence, 'In West Texas, nobody owns more land than us.'

Editor/Somer