EDF Renewables North America and Abu Dhabi Future Energy Company – Masdar, co-owners of the Las Majadas Wind Project, have entered into a power purchase agreement (PPA) with data center developer and operator Soluna Holdings.
Under the terms of the agreement, Soluna will purchase up to 166 MW of energy produced by the Las Majadas Wind Project to power a Soluna data center to be built close to the wind project’s substation.
Soluna’s data center, named Project Kati, will utilize behind-the-meter power generated by the wind project, while also curtailing operations under certain market conditions when energy is most needed by the grid. This innovative PPA structure provides a flexible solution to the challenges of transmission constraints and curtailment, essentially allowing an alternate route to capture under-utilized electricity. In parallel, it provides clean power to an energy intensive operation — advanced computing applications, including artificial intelligence (AI).
Electricity consumption from data centers is growing and expected to reach 1,000 TWh, with the AI boom driving increased global demand. Renewable energy is expected to play a key role in supplying data centers with electricity, while helping suppliers meet net-zero targets.
According to Gabe Messercola, Associate Director, Capital Improvements Portfolio Management at EDF Renewables, “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. We are pleased to collaborate with Soluna to secure a win-win situation.”
Dustin Priemer, Director of Asset Management, Masdar Americas said, “As data centers continue to expand across the U.S., energy demand is rising exponentially, putting increasing pressure on infrastructure. This agreement not only provides an innovative solution to maximize the efficiency of electricity generated at Las Majadas but also allows Soluna to power its new data center with renewable energy—helping to ease concerns about the strain on the grid.”
Las Majadas Wind, located in Willacy County in southern Texas, has a total capacity of 273 MW and became operational in 2021.
News item from EDF
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