Google backs $4.5 bn Arkansas solar‑battery project for AI data centers

Google has signed a virtual power purchase agreement with Cypress Creek Energy to develop the Steel River Energy Center in Arkansas. The hybrid project will eventually deliver 2.5 GW of solar generation and 2.9 GWh of battery storage, enough to supply electricity for more than 315,000 homes and to meet the growing power needs of Google’s AI‑focused data centers.

The first two phases will provide 1.6 GW of solar and 1.9 GWh of storage, with a total investment of about $4.5 billion using U.S.–made steel and solar panels. Google’s Head of Data Center Energy, Will Conkling, said the deal “will strengthen the grid and help ensure more reliable, affordable, and clean energy is available for businesses and communities throughout the state.” The project exemplifies the tech giant’s push toward carbon‑free energy for its expanding AI services.

Solar and battery capacity accounted for 91 % of new U.S. electricity‑generating capacity added in Q1 2026, underscoring the broader industry shift toward hybrid clean‑power systems.