Meta Reveals Significant Solar Purchase Agreement in Texas, Yet Some Data Centers Use Gas

Apex Clean Energy and Meta have entered a power purchase agreement for a solar project in Gonzales County, Texas.
A Meta worker leads a tour of the company’s data center in Temple, Texas, on July 22. Credit: Mikala Compton/The Austin American-Statesman via Getty Images

Apex Clean Energy and Meta have finalized a power purchase agreement, granting Meta financial benefits from a solar project in Gonzales County, Texas.

The 144-megawatt project, deemed unviable without Meta’s support, highlights the tech giant’s evolving energy strategy. This initiative follows Meta’s quiet withdrawal from a corporate renewable energy group earlier this year, prompting speculation about its renewable energy commitments amid the expansion of its energy-intensive data centers, totaling 28 sites in the U.S. as of April.

Meta is preparing to power a new El Paso data center with a 366-megawatt gas-fired plant.

In a statement, Meta noted that while natural gas is part of its AI data center expansion, its exit from the Climate Group’s RE100 initiative doesn’t affect its clean energy commitments. The company claims to have added over 30 gigawatts of clean energy to national grids, maintaining a goal to match electricity use with 100% clean and renewable energy.

Through the Starling Solar project, Meta will claim all environmental attributes, offsetting some gas-fired energy impacts. However, gas plants still pose climate and air-pollution challenges.

Dennis Wamsted, an analyst from the Institute for Energy Economics and Financial Analysis, argues AI developments need not hinder renewable energy progress. He acknowledges Meta’s past contributions to renewables but criticizes its current rapid AI expansion and reliance on natural gas.

“They’re taking what could be considered the easy way out,” Wamsted remarked. “While their past impact on renewables is positive, their current speed of expansion with any available resources is concerning as AI might not be needed that urgently.” He believes wind and solar can quickly power AI data centers nationwide.

Solar energy is increasingly vital in Texas, with Apex projecting the Starling Solar project will support the state’s grid, which faces unprecedented demand amid high temperatures and numerous data centers. Meta operates three facilities in Texas.

In August, Gov. Greg Abbott directed oversight of a comprehensive audit for all data centers connecting to the grid, including evaluations of water consumption and efficiency. Non-compliant centers will be denied interconnection, as outlined in a recent directive.

Renewables accounted for about a third of Texas’s electricity last year, benefiting landowners through agreements like Meta’s. Wamsted noted these projects significantly boost local economies.

Meta and Apex anticipate the Starling project will generate $27 million in tax revenue, $26.3 million in landowner payments, and create 400-450 construction jobs. Starling is set to commence operations next year.

Original Story at insideclimatenews.org