Total SA, the French oil and gas major, signed two long-term agreements on Monday to supply solar power to Alphabet's data centers in Texas, USA. This move is part of Total SA's strategy to capitalize on the growing electricity demand driven by the expansion of artificial intelligence.
The company will supply power to Alphabet from two solar projects in Texas, with a combined capacity of 1,000 megawatts. Over the next 15 years, these projects are expected to provide a total of 28 terawatt-hours of renewable electricity. Construction on the projects is scheduled to begin in the second quarter of this year.
Among major oil and gas companies, Total SA has pursued a distinct development path. While investing in gas-fired power plants, the company has also increased its focus on renewable energy and expanded its electricity business in deregulated power markets. Such markets, including the Electric Reliability Council of Texas (ERCOT) market, offer significant trading opportunities due to price fluctuations.
Marc-Antoine Pignon, Vice President of Renewable Energy for Total SA in the United States, stated that these agreements represent the largest corporate renewable energy power purchase agreements the company has signed in the U.S.
In fact, Total SA has previously supplied power to Alphabet indirectly. The company holds a 50% stake in Clearway Energy Group, a U.S. renewable energy firm, which recently signed power supply agreements totaling 1,200 megawatts to provide electricity for data centers in three major U.S. power markets.
Will Conklin, Director of Clean Energy and Power at Alphabet, said in a statement, "Our agreement with Total SA will add necessary generation capacity to the local power system, further enhancing the region's overall supply of economical and reliable electricity."
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