RWE Signs 433 MW Virtual Power Purchase Agreement with Oracle to Power Texas Data Centers

RWE has entered into a virtual power purchase agreement with Oracle for 433 megawatts of domestic electricity production, marking a significant step in the technology sector's push to secure long-term renewable energy supplies for its rapidly expanding data center operations. The agreement underscores the growing intersection of energy providers and cloud computing infrastructure as artificial intelligence workloads drive unprecedented electricity demand across the United States.

The power will be supplied by RWE's existing Panther Creek I, II and III wind farms located in Sterling, Howard and Glasscock counties in West Texas. The VPPA forms part of a broader portfolio of power investments announced by Oracle, which collectively represent more than 1.7 gigawatts of electricity generation capacity supporting the Texas grid. The arrangement is structured to provide power to the Texas grid in support of Oracle's data center operations.

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, adding that with nearly two decades of U.S. 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 noted that such partnerships 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 Oracle is committed to developing data centers responsibly by investing in renewable energy, strengthening the local power grid and helping ensure that electric bills and grid stability are not impacted. She stated that the work with RWE advances Oracle's goal of matching 100 percent of its AI data center electricity use with carbon-free electricity by 2035 while supporting a more reliable, resilient and affordable energy system for the State of Texas.

The Panther Creek I and II facilities were repowered in the third quarter of 2019, while Panther Creek III was repowered in 2021. Across their lifetime, these projects are expected to generate more than $70 million in property tax revenues for Sterling, Howard and Glasscock counties, funds that help support schools, roads, emergency services and other essential public services that families rely on every day.

The agreement reflects a broader trend in which hyperscale technology companies are increasingly turning to virtual power purchase agreements as a mechanism to procure renewable energy at scale while managing the intermittency challenges associated with wind and solar generation. By contracting with established operators like RWE, which continues to grow in the U.S. to deliver homegrown American energy, support grid reliability and leverage energy abundance to support the energy needs for manufacturing, data centers and broad-based electrification, Oracle is positioning itself to meet both its sustainability targets and the substantial power requirements of its expanding AI infrastructure footprint in Texas.