In a significant move that underscores the growing intersection of technology and renewable energy, French oil and gas giant TotalEnergies has secured an impressive 21-year power purchase agreement (PPA) with Google to supply renewable energy for its data centers located in Malaysia. This partnership not only expands TotalEnergies' collaboration with Google but also marks a notable commitment to long-term energy solutions suitable for tech giants.
On Tuesday, TotalEnergies made the announcement, revealing that it will provide Google with a substantial amount of certified renewable energy—specifically, 1 terawatt-hour (TWh), which is roughly equivalent to 20 megawatts (MW). This energy will be sourced from the upcoming Citra Energies solar facility in Kedah, a state in northern Malaysia. The solar farm is anticipated to begin construction in early 2026, playing a crucial role in powering Google's data center operations in the region.
The PPA is set to commence once the project reaches financial closure, which is projected to occur in the first quarter of 2026. Sophie Chevalier, Senior Vice President of Flexible Power & Integration at TotalEnergies, emphasized the significance of this agreement, stating, "This PPA illustrates our Company’s ability to offer competitive power solutions tailored to the needs of major tech groups, both in mature markets, such as the United States and Europe, and in emerging countries like Malaysia."
Notably, Malaysia boasts the largest pipeline of data center projects in Southeast Asia, accounting for 3.4 gigawatts (GW), or 60% of all proposed initiatives across the region, as reported by Wood Mackenzie. Analysts predict that by 2035, over 10% of the electricity demand in Malaysia and Singapore could stem from data centers alone, highlighting the critical need for sustainable energy solutions to meet this growing demand.
The agreement with Google in Malaysia is part of a broader trend for TotalEnergies, which has been actively securing various PPAs to provide renewable energy to data centers in Europe and the United States. Just last month, the company signed a 15-year PPA to supply renewable electricity to Google's facilities in Ohio, utilizing energy from a local solar farm operated by TotalEnergies. Moreover, in early November, they established a 10-year power purchase agreement with Data4 to supply renewable electricity to data centers in Spain, reflecting TotalEnergies’ ambition to enhance its integrated power business amidst the rising global demand for electricity.
By Tsvetana Paraskova for Oilprice.com
