Total(TTE.US) signs long-term solar power supply agreement with Google to capitalize on AI-driven electricity demand

French oil and gas giant TotalEnergies (TTE.US) signed two long-term agreements on Monday to supply solar power to Google’s (GOOGL.US) data centers in Texas, aiming to meet the rapidly growing electricity demand driven by artificial intelligence. TotalEnergies will activate its two solar sites in Texas, providing 1 billion watts of generation capacity—equivalent to 2.8 billion kilowatt-hours of renewable energy over 15 years. Construction of these two solar sites will begin in the second quarter.

Against the backdrop of most oil giants pulling back on renewable energy investments, TotalEnergies is choosing to go against the trend, continuing to increase investments in renewables outside of natural gas power plants, and expanding its electricity business in deregulated, volatile regions such as Texas’s ERCOT market—where price fluctuations can create attractive trading opportunities.

Mark Antoine Pignon, Vice President of Renewable Energy at TotalEnergies USA, stated that this agreement is the largest renewable power purchase agreement signed by TotalEnergies in the United States. Currently, TotalEnergies supplies power to Google indirectly through its 50% stake in California-based renewable energy company Clearway. Recently, Clearway signed a 1.2-gigawatt agreement to supply power to data centers in three U.S. electricity markets.

Will Conklin, Director of Clean Energy and Power at Google, said in a statement, “Our agreement with TotalEnergies adds essential generation capacity to the local power system, enhancing the availability, affordability, and reliability of electricity in the region.”