EDF Renewables North America and Abu Dhabi Future Energy Company – Masdar, joint proprietors of the Las Majadas Wind Initiative, have engaged in a power purchase agreement (PPA) with data center developer and operator Soluna Holdings.
Per the conditions of the agreement, Soluna will acquire up to 166 MW of electricity generated by the Las Majadas Wind Initiative to supply energy for a Soluna data center to be situated near the wind project’s substation.
Soluna’s data facility, referred to as Project Kati, will leverage behind-the-meter power produced by the wind project, while also scaling back operations under specific market circumstances when energy demand is highest on the grid. This novel PPA framework offers a versatile approach to navigating transmission limitations and operational curtailment, effectively establishing an alternate avenue for harnessing underutilized electricity. Concurrently, it supplies clean energy to an energy-intensive endeavor — sophisticated computing applications, including artificial intelligence (AI).
The power usage from data centers is escalating and is projected to reach 1,000 TWh, with the surge in AI contributing to increased global demand. Renewable energy is anticipated to play a significant role in powering data centers while assisting suppliers in achieving net-zero objectives.
As per Gabe Messercola, Associate Director, Capital Improvements Portfolio Management at EDF Renewables, “Behind-the-meter offtake opportunities offer a distinctive benefit for market-exposed renewable projects by physically providing a portion of a facility’s output directly to a co-located buyer’s establishment. We are delighted to partner with Soluna to create a mutually beneficial arrangement.”
Dustin Priemer, Director of Asset Management, Masdar Americas stated, “As data centers continue to proliferate throughout the U.S., energy requirements are rapidly increasing, exerting greater pressure on infrastructure. This agreement not only offers an innovative strategy to enhance the efficiency of electricity produced at Las Majadas but also enables Soluna to supply its new data center with renewable energy—helping to alleviate concerns regarding grid strain.”
Las Majadas Wind, situated in Willacy County in southern Texas, has a cumulative capacity of 273 MW and commenced operations in 2021.
News item from EDF
Filed Under: News, Projects
