Data centers embrace solar: A comprehensive guide to 100+ MW solar deals

TL;DR

• Data centers are accelerating power demand to meet AI-driven growth, with projections to double sector demand by 2029 per JLL.
• Since the start of 2025, tech companies and data center operators have backed 12 solar deals, each adding more than 100 MW of capacity.
• Notable 100+ MW solar deals include Meta with Engie (200 MW) and Zelestra (595 MW), Microsoft with EDP Renewables North America (389 MW) and AES (475 MW), and Cisco with X-Elio (100 MW).
• Solar is winning on near-term economics and deployment speed: average solar farm completion is around 18 months, and solar power is among the lowest-cost new generating options.
• Beyond the U.S., deals in India, Argentina, and Italy demonstrate a broad, global pivot toward solar PPAs tied to data-center capacity. For more details, see TechCrunch’s overview of large-scale solar deals tied to data centers. TechCrunch

Context and background

The AI boom has energized data-center construction and expansion, with tech giants racing to secure capacity to support increasingly AI-enabled services and workloads. This surge has also translated into a notable shift in the energy mix used to power these centers. While nuclear and natural gas have benefited from forecasted demand, solar power has emerged as a fast-moving, cost-competitive option that can be scaled quickly to meet spikes in demand. Solar power offers several practical benefits for large-scale deployments. It is a proven technology with relatively short lead times compared with new nuclear or natural gas plants; the article notes that a new solar farm can typically be completed in about 18 months. In addition, solar is described as one of the lowest-cost sources of new generating capacity without subsidies, and it can be deployed in phases to allow data centers to draw power progressively as projects come online. Intermittency remains a consideration, but the near-term economics and deployment flexibility have driven a wave of large-portfolio solar PPAs alongside traditional power purchases.

What’s new

The pace of solar deals has accelerated since the start of 2025, with solar PPAs over 100 MW becoming a defining trend for data-center operators and their corporate sponsors. Notable examples include a steady stream of multi-hundred-megawatt commitments from major players:

• Meta Platforms kicked off the year with a 200 MW solar deal with Engie for a solar farm near one of its Texas data centers. Meta already maintains a renewable portfolio exceeding 12 GW of generating capacity.
• In January, the Stargate AI partnership between OpenAI, Oracle, and SoftBank Group was reported to be powered, at least in part, by solar; SB Energy plans to develop solar installations backed by grid-scale batteries.
• Meta closed a second large deal in January, signing a 595 MW solar contract with Zelestra.
• In February, Meta extended its solar portfolio with a 505 MW project developed by Cypress Creek Renewables in Coleman County, Texas.
• Microsoft entered with a substantial portfolio, adding 389 MW of solar under a deal with EDP Renewables North America, covering three solar farms in Illinois and Texas.
• Amazon pursued a sizable hybrid project on the Iberian Peninsula combining wind, solar, and pumped-hydro storage, totaling 476 MW, of which 212 MW are solar.
• Outside the U.S., India’s CtrlS built a 125 MW solar facility, while Telecom Argentina agreed to buy electricity from a 130 MW solar farm developed by MSU Green Energy in South America.
• In March, Microsoft disclosed three additional solar developments in the Midwest—Illinois, Michigan, and Missouri—developed by AES, totaling 475 MW for Microsoft.
• Cisco joined the cohort with a 100 MW deal to buy capacity from two Texas solar projects operated by X-Elio (a Brookfield subsidiary).
• Meta expanded again with a 200 MW solar deployment in March in a deal with RWE, southeast of Austin.
• Italy saw Data4 sign a 148 MW solar farm contract with Edison Energia for 10 years northwest of Rome. Together these deals underscore a broader industry shift toward solar as a scalable, near-term path to decarbonize power for data centers. The proliferation of PPAs with solar developers and utilities reflects a balance between rapid deployment, competitive pricing, and the ability to stage projects to meet evolving capacity needs. For a snapshot of the scale and players involved, see the reference list at the end of this article.

Why it matters (impact for developers/enterprises)

For developers, the rapid growth in 100+ MW solar deals translates into a more predictable demand pipeline, longer-term off-take certainty, and the opportunity to optimize project siting near data-center clusters. Enterprises that operate large cloud and AI workloads gain by aligning power procurement with major capacity commitments, potentially stabilizing energy costs and reducing exposure to fossil-fuel price volatility. For data-center operators, solar PPAs support greener energy credentials and help meet corporate sustainability pledges. Solar’s ability to be deployed in phases allows operators to scale energy supply in line with facility openings and growth trajectories, rather than committing up front to the full capacity in a single project. In markets outside the United States, such as India, Argentina, and Italy, solar PPAs also illustrate how developers and operators are pursuing geographically diverse portfolios to lock in price and supply security across regions.

Technical details or Implementation

Key characteristics of these solar deals reflect both market dynamics and technical realities. The 18-month average completion time cited for new solar farms highlights how solar can be deployed relatively quickly compared with some other generation options. The ability to phase installations means data centers can begin drawing power from a project as it scales, offering a path to incremental capacity rather than a single, large upfront build. PPA-backed solar deployments in these deals are often paired with battery storage or planned to be complemented by storage in related projects. For example, SB Energy’s solar initiatives are described as backed by grid-scale batteries in some cases, which can enhance resilience and provide grid services, even as solar output fluctuates with the sun. The mix of solar with other renewables and storage is part of a broader trend toward diversified, low-carbon energy portfolios for large users. From a cost perspective, solar is positioned as one of the lowest-cost sources of new generating capacity among alternatives, another driver behind the rapid adoption in data-center power supply. The ability to deploy projects in phases also helps developers align capital with project milestones and market demand, reducing risk while accelerating time-to-value for data-center operators.

Key takeaways

• AI-driven data-center expansion continues to surge, driving higher electricity demand and a push toward renewable sourcing.
• Solar deals over 100 MW have become a defining feature of this market, with at least 12 such deals since the start of 2025.
• Major players involved include Meta, Microsoft, Cisco, Amazon, Data4, CtrlS, Telecom Argentina, and others, signaling broad corporate commitment to solar-powered data centers.
• Solar’s advantages—lower cost, rapid deployment (often in phases), and scalable capacity—are central to why it is winning near-term, even as intermittency remains a consideration.
• The global footprint is expanding beyond the U.S. into Europe, India, and South America, reflecting a diversified approach to securing solar capacity for data-center needs.

References

• TechCrunch article: Data centers love solar — here’s a comprehensive guide to deals over 100 megawatts