Vistra $VST has signed a 20-year contract to supply up to 207 MW for a data center in Texas.

Electricity will start flowing to it in mid-2027. In addition, Vistra will get a 5% stake in the part of the data center it will power. It is no longer just an electricity supplier, but also a co-owner. The bottleneck today is not chips, but electricity.

I have Vistra in my portfolio with an average price of $144, and if there is a bigger drop, at least to $135, I would like to buy more.

I believe that the biggest constraint on artificial intelligence will not be chips, but electricity. Every new data center needs a stable energy source that runs 24 hours a day, and Vistra has exactly that thanks to its nuclear and gas power plants.

The grid also takes years to build, while demand grows every month. Whoever has power plants now will set the terms. And this deal shows that Vistra no longer wants to be just a supplier, but wants to have a stake in what its electricity powers.