ENGIE, a global energy firm, has signed two power purchase agreements (PPA) this week, one with data center operator QTS to supply 48 MWac to its campus in Irving, Texas, and the other with renewable energy developer ABEI Energy.
Under the agreement with ABEI, ENGIE will secure renewable energy generation from ABEI Energy’s Lubio Solar project in Kaufman County in north-central Texas, expanding its renewable energy footprint in the ERCOT market.
“Data center customers continue to seek long-term, dependable renewable energy solutions that align with both operational and sustainability goals,” said Taymur Bunkheila, Regional Vice President, Key Accounts and Energy+, ENGIE North America. “ENGIE’s global experience and integrated capabilities enable us to structure customized solutions that seamlessly combine renewable generation with retail power supply.”
ENGIE didn’t state how much of the energy generated at the Lubio Solar project it would be purchasing. A press release issued by the firm states it is an approximately 61 MWac solar project that is expected to generate 150 GWh of electricity annually. The facility is not yet operational but is expected to come online in 2028.
QTS operates a 56-acre data center campus in Irving. The company notes that the campus supports over 165 MW of critical IT capacity. With the ENGIE agreement in place, a portion of the campus will soon be powered by renewable energy. QTS has three other data center campuses in Texas located in Fort Worth, San Antonio, and South Dallas.
“This project is a meaningful step forward in our renewable energy strategy, supporting the long-term sustainability and operational resilience of our Texas footprint,” said Travis Wright, Vice President Energy and Sustainability, QTS. “By partnering with ENGIE, we’re able to support reliable, renewable energy procurement while simplifying delivery through our retail supply arrangement. Collaborations like this help us align clean energy procurement with the operational needs of our data centers.”
By 2035, energy generation for data centers could top 1,300 TWh according to the International Energy Agency (IEA). By 2030, half of the demand from data centers is expected to come from renewable sources, with natural gas and coal expected to meet 40 percent of the demand. Post 2030, the IEA expects small modular reactors will feature more prominently in the energy mix across the data center market. While carbon emissions will peak at 320 Mt by 2030, as renewable energy adoption grows this will decline to 300 Mt by 2035 according the IEA’s estimates.