Meta has signed an agreement to buy 650 megawatts of solar power from projects in Kansas and Texas developed by AES Corporation.

The deal includes 400 megawatts in Texas and 250 megawatts in Kansas.

This agreement supports Meta’s growing data centers, especially for AI operations.

It is Meta’s fourth solar deal this year, all in Texas, bringing its total renewable energy capacity to over 12 gigawatts.

AES usually starts power purchase agreements two to three years before the solar projects begin and the contracts last 15 to 20 years.

Meta’s move reflects a trend among big companies favoring solar energy for its fast setup and cost savings.

These developments show how solar energy is becoming key to powering large tech infrastructure like Meta’s data centers.

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🔗 Source: TechCrunch

🧠 Food for thought

1️⃣ Meta’s renewable push reflects broader tech sector climate race

This latest 650 MW deal adds to Meta’s already substantial renewable portfolio exceeding 12 gigawatts, positioning it among tech’s leading clean energy buyers.

In 2023, Meta ranked as the second-largest corporate buyer of renewable energy globally, behind only Amazon and ahead of Google 1.

The timing aligns with Meta’s AI infrastructure expansion, demonstrating how technology companies are scaling renewable purchases alongside their growing energy-intensive computing operations.

Since first committing to 100% renewable energy in 2018, Meta has dramatically accelerated its purchasing pace, securing over 2,500 megawatts in a single 12-month period during its initial push 2.

Corporate renewable power purchase agreements have grown at a remarkable 33% annual rate since 2015, with tech companies driving much of this expansion as their data center footprints increase 1.

This trend extends beyond Meta, with Microsoft recently signing a record-breaking 10.5 GW deal with Brookfield valued at over $10 billion to support its own data center growth 3.

2️⃣ Texas emerges as the strategic nexus for solar development

Meta’s decision to locate all four of its 2024 solar deals in Texas reflects the state’s emergence as America’s solar development leader.

Texas led the nation in new solar capacity installations in both 2023 and 2024, creating a competitive environment for large-scale projects like Meta’s.

The state’s combination of abundant sunshine, streamlined permitting processes, and rapid grid connections creates ideal conditions for tech companies requiring quick deployment of renewable energy.

These advantages allow solar farms to be constructed in months rather than years—a crucial factor for companies like Meta facing rapidly growing energy demands from AI operations.

Texas has also attracted other hyperscalers, contributing to its position as the second-largest data center market in the U.S., with companies specifically citing renewable energy sourcing capabilities as a location factor 4.

For Meta and similar companies, the ability to phase in solar capacity—with electricity flowing before complete project completion—provides flexibility that aligns perfectly with incremental data center expansions.

3️⃣ Corporate buyers reshape renewable energy markets through long-term commitments

The 15-20 year average term for Meta’s power purchase agreements demonstrates how tech companies provide the long-term financial certainty that enables new renewable development.

These multi-decade commitments effectively function as guaranteed revenue streams for developers like AES, substantially reducing project risks and financing costs.

This model has transformed renewable energy markets, with corporate PPAs reaching a record 46 GW of announced solar and wind contracts in 2023, a 12% increase from the previous year 1.

The aggregate impact is substantial—since 2008, corporate power purchase agreements have facilitated 198 GW of renewable energy development globally 1.

Meta’s renewable strategy extends beyond solar, with recent initiatives including partnerships with companies like Sage Geosystems to incorporate geothermal energy into its portfolio as it works toward net zero emissions by 2030 5.

This diversification approach reflects an evolving corporate renewable strategy that balances deployment speed, cost effectiveness, and reliability across multiple clean energy technologies.

Recent Meta developments

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