Meta Secures $900 Million Solar Deal to Power Texas Data Centers
Meta announced Tuesday a major power purchase agreement with Canadian energy giant Enbridge to acquire 100% of the electricity generated by a massive 600-megawatt solar facility near San Antonio, Texas, marking the social media conglomerate's latest move to secure clean energy for its rapidly expanding artificial intelligence operations. The deal prompted Enbridge to commit $900 million to complete construction of the Clear Fork solar plant, which is expected to begin operations in summer 2027, just ahead of federal tax credit changes that take effect under recently passed Congressional legislation.
The agreement highlights the growing energy demands of big tech companies as they strive to build data centers capable of supporting AI workloads, while also meeting their ambitious environmental commitments. Meta's decision comes as the tech industry grapples with the enormous power requirements of artificial intelligence systems, which can consume significantly more electricity than traditional computing operations.
Strategic Timing Amid Changing Federal Landscape
The announcement arrives just weeks after Congress passed the One Big, Beautiful Bill Act, a reconciliation package that begins winding down solar and wind tax credits established under the Inflation Reduction Act. The legislation requires wind and solar projects to be placed in service by 2027 to qualify for altered investment tax credits, creating urgency for developers to finalize construction timelines.
"We are thrilled to partner with Enbridge to bring new renewable energy to Texas and help support our operations with 100% clean energy."
— Urvi Parekh, Meta Head of Global Energy
Analysts at Jefferies predicted that utility companies with "renewables-heavy plans" may accelerate wind and solar projects to ensure they qualify for the modified tax credits, according to ESG Dive. The legislative changes have created what Arvin Vohra, CEO of energy-as-a-service company Redaptive, described as a "compelling event" for companies to decide whether to move ahead with solar facility decarbonization plans.
Meta's Renewable Energy Leadership Position
Meta has established itself as the largest corporate purchaser of renewable energy in the United States, maintaining the most extensive operating renewable energy portfolio among corporate buyers in 2023, according to the company's 2024 environmental report. The Facebook, Instagram, and WhatsApp parent company has achieved net-zero emissions across its operational portfolio since 2020, "primarily" by matching 100% of its data center usage with renewable energy.
The Clear Fork solar plant represents Meta's continued expansion of its clean energy infrastructure as the company confronts the substantial power demands of artificial intelligence development. The 600-megawatt facility will significantly contribute to Meta's renewable energy capacity, although the company has not disclosed specific details about which Texas data centers will receive the solar power.
Matthew Akman, Enbridge's executive vice president for corporate strategy and president of power, emphasized the broader market implications of the deal. "Clear Fork demonstrates the growing demand for renewable power across North America from blue-chip companies who are involved in technology and data center operations," Akman said in the company's release.
The AI Energy Challenge
The timing of Meta's solar investment reflects the tech industry's broader struggle to balance artificial intelligence innovation with sustainability commitments. AI systems require substantially more computational power than traditional applications, driving unprecedented energy demand at data centers worldwide.
Meta's energy strategy has evolved rapidly as the company pursues AI leadership while maintaining environmental goals. The company has diversified its clean energy portfolio beyond solar, signing deals for next-generation geothermal energy and exploring nuclear power options to meet growing electricity demands.
Nuclear Ambitions Signal Long-Term Strategy
Meta's renewable energy strategy extends well beyond solar power, with the company making significant commitments to nuclear energy as a baseload power source for its AI operations. In December, Meta issued a request for proposals seeking up to 4 gigawatts of new nuclear generation capacity to come online by the early 2030s, citing the need to meet "AI innovation and sustainability objectives".
The company followed through on its nuclear ambitions last month, announcing a 20-year power purchase agreement with Constellation Energy to provide nuclear energy from an Illinois plant starting in 2027. Meta's commitment will help keep the facility operational after Illinois's zero-emission energy tax credit expires, demonstrating the company's willingness to support existing clean energy infrastructure.
Enbridge's Growing Power Portfolio
For Calgary-based Enbridge, traditionally known as North America's largest pipeline company, the Clear Fork project represents continued diversification into renewable energy generation. The company expects the solar facility to contribute to cash flow and earnings per share growth beginning in 2027, when the plant enters commercial operation.
The $900 million investment reflects Enbridge's strategic shift toward power generation and transmission as the energy sector undergoes fundamental changes. The company has been expanding its renewable energy portfolio as traditional fossil fuel infrastructure faces increasing regulatory and market pressures.
Canada-based Enbridge's decision to proceed with the final investment followed Meta's power purchase commitment, illustrating how corporate renewable energy demand drives utility-scale project development. The arrangement provides Enbridge with long-term revenue certainty while giving Meta access to dedicated clean energy capacity.
Texas as a Renewable Energy Hub
The Clear Fork solar plant's location near San Antonio reflects Texas's emergence as a leading renewable energy state, with abundant solar resources and a business-friendly regulatory environment. Texas leads the nation in wind power generation and has rapidly expanded solar capacity in recent years, making it an attractive location for large-scale renewable projects.
The state's deregulated electricity market allows companies like Meta to enter into direct power purchase agreements with generators, providing more flexibility than traditional utility arrangements. This regulatory structure has attracted numerous tech companies to build data centers in Texas while securing dedicated renewable energy supplies.
Texas's renewable energy boom has been driven partly by corporate demand from major technology companies seeking to power data centers with clean electricity. The state's combination of favorable economics, regulatory environment, and renewable resources has made it a preferred location for utility-scale solar and wind development.
Industry-Wide Clean Energy Push
Meta's solar deal reflects broader trends across the technology sector, where companies face mounting pressure to reduce carbon emissions while dramatically expanding computing capacity for artificial intelligence applications. Major tech companies have committed to ambitious climate goals while acknowledging that AI development presents significant energy challenges.
The renewable energy corporate procurement market has grown substantially as companies seek to match their electricity consumption with clean generation. Corporate buyers have become major drivers of utility-scale renewable development, providing developers with long-term revenue contracts that enable project financing.
Technology companies have emerged as the largest corporate buyers of renewable energy, with their data center operations requiring substantial amounts of reliable electricity. The sector's growth in AI capabilities has only intensified energy demands, prompting companies to secure dedicated clean energy capacity through long-term agreements.
Balancing Innovation and Sustainability
As the Clear Fork solar plant moves toward its 2027 completion date, Meta's investment represents a broader industry effort to reconcile the advancement of artificial intelligence with environmental responsibility. The company's multi-faceted approach, which combines solar, nuclear, and geothermal energy sources, suggests that meeting AI energy demands will require diverse clean energy solutions.
The success of projects like Clear Fork may influence the renewable energy strategies of other technology companies as they seek to secure adequate power supplies for expanding AI operations. With federal tax incentives set to change after 2027, the current period presents a critical window for companies to secure favorable economics for clean energy projects.
Meta's $900 million solar commitment with Enbridge demonstrates how corporate renewable energy demand continues to reshape the electricity sector, driving utility-scale project development while helping technology companies meet sustainability goals despite growing energy requirements from artificial intelligence workloads.