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Oracle Signs 1.7GW Wind Energy Supply Agreements to Power Texas Data Center Operations

By: IDCNOVARegion: North America
Oracle has signed a series of wind energy supply agreements across Texas that are expected to deliver more than 1.7GW of carbon-free energy to the Electric Reliability Council of Texas grid, marking one of the largest renewable energy procurement packages by a cloud and AI infrastructure provider in the state to date. The deals underscore the growing pressure on hyperscale data center operators to secure long-term, clean power supplies as artificial intelligence workloads drive electricity demand to unprecedented levels.

The agreements span ten wind projects and involve several major renewable energy suppliers, including Clearway Energy, Engie, RWE, and Scout Clean Energy. The power is expected to support operations at Oracle's Abilene data center campus in West Texas, a facility that forms a key part of the company's expanding cloud infrastructure footprint.

Oracle has set a goal to match 100 percent of its AI data center electricity use with carbon-free electricity by 2035. Mahesh Thiagarajan, executive vice president of Oracle Cloud Infrastructure, said the announcement marks measurable progress toward that goal and reflects the company's commitment to building data centers responsibly, protecting the air, water, and land in the communities where it operates while paying its own way for the energy it uses.

The largest disclosed agreement is with Engie North America, under which Oracle will offtake 568MW of wind energy to support its Texas operations. The companies did not disclose the specific projects tied to the agreement but said the power will be delivered through a portfolio of wind energy resources.

A second major deal, structured as a virtual Power Purchase Agreement with RWE, will see Oracle offtake 433MW of wind energy from three wind farms in West Texas. Under the terms of the vPPA, Oracle will purchase power from the already operational Panther Creek I, II, and III wind farms located in Sterling, Howard, and Glasscock counties. Panther Creek I was commissioned in 2008 with a capacity of 142MW, while Panther Creek II also came online in 2008 with 115.5MW. Panther Creek III was commissioned in 2009 with an initial capacity of 199.5MW, which was upgraded to 215MW following a repowering process completed in 2021.

Ingmar Ritzenhofen, chief commercial officer of RWE Americas, said America's growing energy needs require reliable, long-term power solutions delivered at speed and at scale. He noted that with nearly two decades of US development, construction, and operations experience, RWE Americas is helping customers like Oracle secure the power they need while strengthening grid reliability and supporting affordable energy for Texans. He added that partnerships like this demonstrate how RWE supports large energy users in taking an active role in meeting their energy needs while supporting a reliable, affordable, and resilient power system.

Julia Robin, head of infrastructure planning and sourcing for Oracle Cloud Infrastructure, said the agreements with Engie advance Oracle's goal to match 100 percent of its AI data center electricity use with carbon-free electricity by 2035 while supporting long-term economic growth with no cost impact to the state of Texas. Oracle did not disclose the capacity tied to the remaining agreements.

The deals mark Oracle's second major renewable energy announcement this month, following the launch of a Request for Proposals to develop 2GW of new renewable energy capacity in New Mexico. That RFP will solicit projects using solar, wind, geothermal, and other renewable energy technologies, prioritizing projects that can deliver energy on an accelerated timeline.

The announcements reflect a broader trend among hyperscale data center operators to lock in dedicated renewable energy supplies as AI-driven computing demand strains existing grid infrastructure. By securing large-scale wind power through long-term agreements, Oracle is positioning itself to manage both energy costs and sustainability commitments amid rapid data center expansion across the United States.