Abu Dhabi’s Masdar and EDF Renewables North America have signed a power purchase agreement (PPA) with Soluna Holdings (NASDAQ: SLNH) to supply renewable energy from the Las Majadas Wind Project to a new data center, the companies said on Tuesday.
Under the deal, Soluna will purchase up to 166 megawatts (MW) of power from the Texas-based wind farm to operate its upcoming Project Kati data center, which will be built near the facility’s substation. The agreement is designed to capture under-utilized electricity while also allowing the data center to scale down operations when power demand peaks on the grid.
“With data center energy consumption rising rapidly, behind-the-meter offtake solutions present a unique opportunity for renewable projects to secure stable demand,” Gabe Messercola, Associate Director at EDF Renewables, said in a statement.
The deal comes amid a surge in energy demand from data centers, fueled by the AI boom and cloud computing expansion. Global electricity consumption from data centers is forecast to reach 1,000 terawatt-hours (TWh) in the coming years, with renewable energy seen as key to reducing the industry’s carbon footprint.
“As data centers proliferate across the U.S., they are placing enormous pressure on infrastructure,” Dustin Priemer, Director of Asset Management at Masdar Americas, said. “This agreement not only maximizes the efficiency of the Las Majadas Wind Project but also provides Soluna with a clean energy source to power its operations.”
The 273 MW Las Majadas Wind Project, located in Willacy County, Texas, began operations in 2021. The partnership reflects a growing trend of tech companies seeking direct renewable energy agreements to meet sustainability goals while mitigating exposure to volatile power markets.
