Google has entered into an agreement to purchase the entire output of one of the largest solar farms in the US: Steel River Energy Center.
By purchasing the output of Steel River Energy Center, one of the largest solar energy projects in the US, Google aims to reduce the growing CO₂ emissions from its AI data centers. The project is expected to become operational in 2029 and will deliver 1.6 gigawatts of solar energy and 2 gigawatt-hours of battery storage in its first phase, enough to power more than 315,000 households annually. Eventually, the capacity will grow to 2.5 gigawatts of solar energy and 2.9 gigawatt-hours of storage.
Virtual power purchase
Google is entering into a virtual power purchase agreement (VPPA). Under this agreement, the company buys the entire electricity production at a fixed price without directly using the generated power itself. Because data centers require electricity day and night, they remain connected to the power grid, which consists of a mix of gas, nuclear, coal, and renewable energy. The generated solar energy is therefore supplied to the grid, while Google financially supports the sustainable production.
According to Google, such a long-term contract with the solar farm ensures that developers have sufficient financial security to realize new renewable energy projects.
AI increases energy consumption
The agreement comes at a time when the power consumption of AI data centers is rising sharply. Google saw its electricity consumption increase by 37 percent in 2025, while Microsoft reported a 24 percent increase. According to the US Energy Information Administration, total electricity demand in the US could grow by 25 to 50 percent by 2050.
Google continues to invest in sustainable energy, yet the company acknowledged that its climate goals are becoming increasingly difficult to achieve. CO₂ emissions from electricity consumption also rose significantly again last year.