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Google Buys Solar Output to Offset Emissions

Financial Times Companies •
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Google has agreed to buy the output of the Steel River Energy Center in Arkansas, a 1.6 GW solar plant with 2 GWh of battery storage that will initially power 315,000 homes each year. The deal is a virtual power purchase agreement; Google will pay a fixed price for the plant’s electricity without receiving the energy itself, giving developers a financial guarantee to secure financing.

The partnership highlights Google’s continued demand for renewables, even as aurez President Donald Trump’s administration has rolled back incentives. While the company still draws power from the grid, its investment supports local supply chains: First Solar panels, Arkansas‑sourced steel, and LG batteries from Phoenix.

Critics note that companies often still rely on fossil‑fuel‑heavy grids, and Google’s grid‑based emissions rose 37 % in 2025. Nonetheless, Google’s head of data‑centre energy, Will Conkling, and Cypress Creek Energy chief Kevin Smith see the project as a rare bright spot for U.S. solar in a politically challenging climate.

The Steel River project also underscores the importance of U.S. manufacturing and the role of tax credits that restrict use of equipment from "proscribed foreign entities" such as China.