Google Backs Major Solar Project in Arkansas to Offset Emissions

Google agreed to purchase the entire initial output of the Steel River Energy Center in Arkansas, a 1.6 gigawatt solar and 2 gigawatt-hour battery storage project, when it comes online in 2029. The deal is a virtual power purchase agreement where Google will pay a fixed price for the electricity generated, even though it won’t directly receive the power. This commitment provides financial security for the renewable energy project’s developers, enabling them to secure funding and build the facility.

The project aims to supply enough energy to power over 315,000 homes annually and will eventually reach 2.5 GW of solar power and 2.9 GWh of storage. While data centers require consistent power, often relying on a mix of sources, Google utilizes the grid to ensure uninterrupted service and distributes the generated solar energy to customers with more variable demand.

However, critics point out that companies still draw power from the grid, and the clean energy they purchase may be generated elsewhere. Google acknowledged in its 2026 environmental report that meeting its climate goals is becoming increasingly challenging as energy consumption rises.