A massive solar plus storage deal will change how Google powers its data centers. The first two Arkansas phases promise grid-delivered clean power and a path toward a 2029 completion.
According to Techcrunch
Google announced the largest-ever purchase of clean energy – solar energy with storage. The first two phases of the project are located in Arkansas and, according to the company, will provide about 6% of the state’s peak demand.
Power from the facility will be fed directly into the grid, reducing demand from Google’s data centers. The company is investing in the project in partnership with Cypress Creek Energy and will buy the entire output of the first two phases, adding 1 gigawatt of solar capacity and 1.9 gigawatt-hours of storage to its portfolio.
According to deal participants, after the completion of all three phases, the Steel River Energy Center will become the largest solar installation in the United States. The third and final phase is to be connected to the grid in 2029; total capacity will be about 1.8 gigawatts of solar capacity and 2.9 gigawatt-hours of storage. Cypress Creek secured financing of $3.5 billion to support the first two phases.
The Steel River Energy Center project will be located about 30 miles north of Memphis, Tennessee. The combination of solar panels with large batteries will enable stable power delivery to the grid throughout the day.
This move supports Google’s strategy of aligning electricity usage with clean energy on an hourly basis, which is expected to spur the emergence of more hybrid stations in the energy system.
In the competitive landscape, Google faces a different approach: xAI operates an unpermitted gas-fired power plant roughly 40 miles south of Steel River.
According to Reuters, Elon Musk has significantly invested in natural gas to support Colossus data centers, despite Tesla’s activity in solar panels and battery systems. Reuters also found that about 60 gas turbines in xAI’s portfolio operate without federal clean air permits, and pollution from the gas plant in Mississippi affects certain Black communities.
Meanwhile Google continues to invest in gas projects, including a 933-megawatt facility built in partnership with Crusoe in Western Texas. However, this case is viewed as an exception in a portfolio that is primarily oriented toward clean energy.
Given the pace of deployment of such facilities – almost 2 gigawatts of solar capacity in three years – it is expected that Google will continue to actively develop renewable energy and energy storage systems, integrating them into the grid.
The takeaway is that Steel River demonstrates the growing role of renewable energy and batteries in the future energy balance, while the market continues to seek different models for ensuring grid stability and reducing carbon footprints.

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