Google backs 1.8 GW Arkansas solar project

Google has struck its largest solar and battery storage purchase yet, backing a massive Arkansas project that will eventually reach 1.8 gigawatts of solar and 2.9 gigawatt-hours of battery storage.

The company said the first two phases of the Steel River Energy Center will generate enough electricity to meet about 6% of Arkansas’s peak demand. Google is investing in the project alongside developer Cypress Creek Energy and buying the entire output of those first two phases, which add 1 gigawatt of solar capacity and 1.9 gigawatt-hours of battery storage to Google’s portfolio.

The electricity will flow directly to the grid, offsetting demand from Google’s data centers. Google said the hybrid setup will support its effort to match its electricity use with clean power on an hourly basis, a stricter standard than annual renewable matching.

Steel River Energy Center timeline and scale

The project will be built about 30 miles north of Memphis, Tennessee, in Arkansas. When all three phases are complete, Google and Cypress Creek say it will be the largest solar facility in the United States. The third phase is scheduled to connect to the grid in 2029.

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Cypress Creek has secured $3.5 billion in financing for the first two phases. By combining solar panels with large batteries, the plant is designed to supply power to the grid throughout the day.

The deal also highlights a contrast in how major data center operators are sourcing power around Memphis. About 40 miles south, xAI is operating an unpermitted natural gas power plant, according to the source article, which cites Reuters. Reuters reported that xAI is running nearly 60 natural gas turbines without federal clean air permits and that pollution from the Mississippi facility is affecting predominantly Black neighborhoods.

Google has not avoided gas entirely: the company is also working with Crusoe on a 933-megawatt natural gas plant in West Texas. But the Arkansas investment fits more closely with its broader strategy of expanding through renewables and batteries, especially as projects on the scale of Steel River can be deployed in roughly three years for nearly 2 gigawatts of solar capacity.