Includes the option to expand to up to 1GW across additional sites
NRG Energy has signed a 295MW supply agreement to power two data centers in Texas.
The deals were announced during the company’s Q2 earnings and will see the data centers constructed on two NRG-owned sites. Initial powering of the data centers is expected in H2 2026, with the facilities expected to be fully operational by 2030. The agreement includes the option to expand to up to 1GW across additional sites.
Commenting on the agreements, Larry Coben, chair, president, and CEO OF NRG said: “We have signed our first long-term data center power agreements. What continues to differentiate NRG is our ability to innovate at scale while staying laser-focused on delivering the full spectrum of energy services to an ever-growing realm of customers - from data centers to businesses of all sizes to families.”
It is unclear which data center developer NRG signed the supply agreement with. DCD has reached out for further information.
According to Coben, the data centers are likely to be powered by assets acquired by NRG in May from LS Power. The $12 billion deal saw NRG acquire 18 natural gas generation facilities with a combined capacity of 13GW, and a virtual power plant platform - dubbed CPower - with 6GW of capacity, located across the Northeast and Texas.
According to the latest earnings, the transaction is expected to close in Q1 of 2026, subject to regulatory approval.
The power supply agreement is not NRG’s first foray with data centers. In February, the firm penned letters of intent with two data center developers, PowLan and Menlo Equities, to develop 500MW and 300MW of gas power generation, respectively.
In addition, it signed a project development agreement with power equipment manufacturer GE Vernova and construction firm TIC to develop up to 5.4GW of natural gas generation. The four plants will serve the ERCOT wholesale market in Texas and the PJM Interconnection wholesale market to meet demand from the data center sector.
The company also partnered with Renew Home and Google Cloud to create a 1GW virtual power plant in Texas late last year.
NRG has a broad mix of energy assets, spanning natural gas, coal, oil, nuclear, wind, and solar sources. The company provides services to over seven million retail customers in 24 states across the US, with a presence in locations such as Texas, Connecticut, and Ohio.
