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EDF Renewables North America, a subsidiary of the French utilities provider, and Abu Dhabi Future Energy Company (Masdar), co-owners of the Las Majadas wind project in Texas, have entered into a power-purchase agreement (PPA) with data centre developer and operator Soluna Holdings.

Under the terms of the agreement, Soluna will purchase up to 166MW of energy produced by the Las Majadas wind project to power a Soluna data centre to be built close to the wind project’s substation. 

Named Project Kati, Soluna’s data centre will utilise behind-the-meter power generated by the wind project while also curtailing its operations under certain market conditions when the grid most needs energy.

In a statement issued on 4 March, Masdar said the “innovative” PPA structure provides a flexible solution to the challenges of transmission constraints and curtailment, allowing an alternative route to capture under-utilised electricity.

In parallel, the deal provides clean power to an energy-intensive operation that includes advanced computing applications and artificial intelligence (AI).

Masdar said electricity consumption from data centres is growing and expected to reach 1,000 terawat-hours, with the AI boom driving increased global demand.

It added: “Renewable energy is expected to play a key role in supplying data centres with electricity, while helping suppliers meet net-zero targets.”

Gabe Messercola, associate director of Capital Improvements Portfolio Management at EDF Renewables, said behind-the-meter offtake opportunities present a unique advantage for market-exposed renewable projects by physically delivering a portion of a plant’s power directly to a co-located buyer’s facility.

Dustin Priemer, asset management director at Masdar Americas, said the deal not only provides an innovative solution to maximise the efficiency of electricity generated at Las Majadas but also allows Soluna to power its new data centre with renewable energy, helping to ease concerns about the strain on the grid.

Located in Willacy County in southern Texas, the Las Majadas wind project has a total capacity of 273MW and became operational in 2021. 

Photo credit: Masdar