Google's data center power puzzle accelerates completion! Collaborating with Cypress Creek Energy to build the largest solar project in the United States

Zhitong
2026.07.15 00:32

Google has signed an agreement with Cypress Creek Energy to jointly build the largest solar and energy storage project in the United States, the Steel River Energy Center. The project is located in Arkansas and will be constructed in two phases, with a final installed capacity of 2.5 gigawatts and energy storage of 2.9 gigawatt-hours, expected to be operational by 2029. Google will purchase all initial electricity generation through a virtual power purchase agreement to offset carbon emissions, with the supply chain involving American companies such as First Solar and LG

According to Zhitong Finance APP, Google (GOOGL.US) announced on Tuesday that it has signed an agreement with Cypress Creek Energy to jointly build its largest solar power and energy storage project in the United States—the Steel River Energy Center located in Mississippi County, Arkansas.

Cypress Creek Energy is a U.S. power producer and energy developer focused on the development, financing, construction, and operation of large-scale solar power and energy storage projects. The project is expected to be built in two phases. The first phase will add 1.6 gigawatts (GW) of solar power generation capacity and 1.9 gigawatt-hours (GWh) of battery storage capacity; once fully completed, the solar power generation capacity will expand to 2.5 GW, and the storage capacity will increase to 2.9 GWh, enough to provide electricity for over 315,000 households in Arkansas.

The solar components required for the project will be supplied by First Solar (FSLR.US), which manufactures all its products using domestically sourced materials; the steel used in the project will be procured in Arkansas, while the energy storage batteries will come from LG's factory in Phoenix, Arizona.

Google stated that this large solar project is expected to be operational by 2029, at which point the company will purchase 100% of the project's initial electricity generation. Under the signed Virtual Power Purchase Agreement (VPPA), Google will buy the clean electricity produced by the project at a fixed price to offset the carbon emissions generated from its grid electricity usage. The specific financial terms of the agreement have not been disclosed by either party.

Will Conklin, Google's Director of Data Center Energy, stated, "This investment will not only provide power to the entire grid but will also ensure that the benefits brought by local generation facilities are shared with all electricity users in Arkansas."

Google's energy supply strategy for data centers extends beyond its collaboration with Cypress Creek Energy to build solar power projects. Earlier this month, the company participated in a €411 million (approximately $468 million) financing round for German nuclear fusion startup Proxima Fusion, which is working to build Europe's first commercial nuclear fusion power plant. Additionally, last year, Google agreed to purchase 200 megawatts of electricity from the first commercial nuclear fusion power station to be built by U.S. fusion company Commonwealth Fusion Systems (CFS), which is expected to begin grid power generation in the early 2030s

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