TotalEnergies has signed two long-term power purchase agreements (PPAs) with Google to supply a combined 1 gigawatt (GW) of solar capacity to the tech giant’s data centers in Texas. The agreements run for 15 years and will deliver approximately 28 terawatt-hours (TWh) of renewable electricity over their lifetime, strengthening the growing link between hyperscale data centers and large-scale clean energy development.

The electricity will be generated from two TotalEnergies-owned solar projects currently under development in Texas: the 805 megawatt (MWp) Wichita Solar Farm and the 195 MWp Mustang Creek Project. Construction on both sites is scheduled to begin in the second quarter of 2026.

According to TotalEnergies, the deal represents the largest volume of renewable PPAs the company has ever signed in the United States, underscoring Texas’ central role in meeting the growing energy demand of data centers and AI infrastructure.

The deal comes as U.S. electricity markets, particularly ERCOT in Texas, face increasing strain from rapid load growth driven by artificial intelligence, cloud computing and electrification. Hyperscale data centers are increasingly turning to long-term PPAs not only to decarbonize operations, but also to ensure reliable and price-stable electricity in increasingly volatile wholesale markets.

The new Texas PPAs complement separate gross PPAs totaling 1.2 GW that Google recently secured with Clearway Energy, a California renewable energy producer that is 50% owned by TotalEnergies. These agreements span ERCOT, PJM in the Northeast and the SPP market in the central United States, highlighting Google’s multi-regional approach to clean energy.

For TotalEnergies, the deal strengthens its position as a leading energy supplier for digital and industrial customers looking for tailor-made renewable solutions. The company has steadily expanded its electricity portfolio in the United States, which now totals 10 GW of solar, wind and battery storage capacity in operation. About half of that, around 5 GW, is in ERCOT, reflecting the attractiveness of Texas’ commercial power market.

The Wichita and Mustang Creek projects are also expected to provide tangible local economic benefits. TotalEnergies said several hundred jobs will be created during construction, while long-term tax revenue from the projects will help fund public services in surrounding communities.

The Google deal aligns with TotalEnergies’ broader strategy of combining renewable energy with flexible assets such as gas-fired power generation and energy storage to deliver “clean firm power” solutions to large customers. By the end of 2025, the company reported more than 32 GW of installed gross renewable electricity capacity worldwide and is targeting more than 100 TWh of net electricity production by 2030.

For Google, the PPAs add next-generation capacity to the Texas grid at a time when system reliability has become a key concern. Rather than relying solely on existing supply, the agreements bring incremental solar capacity online, supporting both corporate decarbonization goals and regional grid stability.

The deal also reflects a broader industry trend: energy companies and Big Tech are increasingly acting as long-term partners in building infrastructure, rather than simply buyers and sellers of energy. As AI-driven demand for electricity accelerates, such arrangements are likely to become more common in U.S. electricity markets.

By Charles Kennedy for Oilprice.com

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