The Google (GOOGL.US) data center power puzzle is being completed at an accelerated pace! Co-build America's largest solar project with Cypress Creek Energy

The Zhitong Finance App learned that Google (GOOGL.US) said on Tuesday that the company has signed an agreement with Cypress Creek Energy to jointly build its largest solar power generation and energy storage project in the US — the Steel River Energy Center Energy Center in Mississippi County, Arkansas.

Cypress Creek Energy is an American power producer and energy developer focused on the development, financing, construction, and operation of large-scale solar power generation and energy storage projects. The project is expected to be built in two phases. The first phase will add 1.6 watts (GW) of installed solar power generation capacity and 1.9 gigawatt-hours (GWh) of battery energy storage capacity; after the completion of the project, the installed capacity of solar power generation will be expanded to 2.5 gigawatts, and the energy storage capacity will increase to 2.9 gigawatt-hours, which is enough to provide electricity to more than 315,000 households in Arkansas.

The solar modules required for the project will be supplied by First Solar (FSLR.US). All of the company's products are manufactured using local American materials; the steel used in the project will be purchased in Arkansas, while the energy storage batteries will come from LG's factory in Phoenix, Arizona, USA.

Google said the large-scale solar project is expected to be put into operation in 2029, at which time the company will purchase 100% of the project's initial power generation. According to the virtual electricity purchase agreement (VPPA) signed by the two parties, Google will purchase clean electricity produced by the project at a fixed price to offset the carbon emissions generated by the electricity used in its grid. The parties did not disclose the specific financial terms of the agreement.

Will Conklin, head of energy at Google's data centers, said, “This investment will not only provide electricity to the entire grid, but will also benefit all electricity users in Arkansas from the local power generation facility.”

Google's data center energy supply layout is not limited to cooperating with Cypress Creek Energy to build a solar power project. Earlier this month, the company participated in €411 million (approximately US$468 million) financing for German nuclear fusion startup Proxima Fusion, which is working to build Europe's first commercial nuclear fusion power plant. Furthermore, last year, Google agreed to purchase 200 megawatts of electricity from the first commercial nuclear fusion power plant to be built in the future by the US nuclear fusion company Commonwealth Fusion Systems (CFS). The power plant is expected to begin grid-connected power generation in the early 2030s.