Google Buys 1.6GW Arkansas Solar Output as Data-Center Emissions Jump 37%
Updated
Updated · Financial Times · Jul 14
Google Buys 1.6GW Arkansas Solar Output as Data-Center Emissions Jump 37%
2 articles · Updated · Financial Times · Jul 14
Summary
Google agreed to take 100% of the initial output from Arkansas’s Steel River Energy Center—a virtual power purchase agreement covering 1.6GW of solar and 2GWh of battery storage when the project starts in 2029.
The deal helps Google offset fossil-fuel-heavy electricity use as its power demand surges; the company said its electricity consumption and grid-based emissions each rose 37% in 2025.
Steel River is billed as the largest US solar-and-storage project to break ground, with capacity planned to expand to 2.5GW of solar and 2.9GWh of storage—enough initially to power more than 315,000 homes a year.
Cypress Creek said the long-term revenue commitment is a rare boost for US solar as the Trump administration cuts support, while the project leans on domestic sourcing from First Solar, Arkansas steel and LG batteries from Phoenix.
The agreement underscores how Big Tech is driving clean-power development even as data centers still rely on mixed grids; Google, Meta, Amazon and Microsoft accounted for 49% of corporate clean-power deals in 2025.
As AI's power demand soars, can virtual green energy deals truly neutralize Big Tech's carbon footprint?
How will the race to power AI with US-made renewables reshape America's energy landscape and local economies?
Google’s Landmark Renewable Energy Investment: $3.5 Billion Solar and Storage Project Fuels Arkansas Data Center Expansion
Overview
Google has strengthened its commitment to clean energy by backing the Steel River Energy Center, a major solar project in Arkansas. Through a landmark deal, Google will purchase 100% of the project's initial output, which is designed to indirectly supply its data centers and help offset its fossil fuel emissions. The Steel River Energy Center is supported by $3.5 billion in financing, reflecting strong confidence from capital markets in high-quality energy infrastructure. This initiative is set to address the rapidly growing electricity demand in Arkansas and the U.S., while also delivering long-term economic benefits to local communities.