How Google and TotalEnergies Secure Power for Data Centres

Google and TotalEnergies are reshaping how energy is procured for large-scale digital infrastructure as AI workloads place growing pressure on global power systems. 

A 21-year agreement between the two companies in Malaysia highlights how hyperscale operators are moving beyond traditional utility supply models to secure long-term, dedicated renewable generation for data centre operations.

As AI and cloud platforms expand, data centres are becoming some of the most energy-intensive facilities on the grid. Technology companies now face the challenge of aligning rapid digital infrastructure deployment with slower-moving energy networks. 

In response, hyperscalers are increasingly financing renewable projects directly to guarantee reliable power and support long-term capacity planning.

Long-term renewable supply for data centres

Under the agreement, TotalEnergies will supply one terawatt-hour of certified renewable electricity from Malaysia’s Citra Energies solar plant to support Google’s data centre operations in the region. The scale of the deal reflects both the rising energy demand of AI workloads and a strategic move towards vertical integration in power procurement.

The Citra Energies solar facility is awarded to TotalEnergies with a 49% stake alongside local partner MK Land holding 51%. The project forms part of Malaysia’s Corporate Green Power Programme, or CGPP, which is designed to enable direct agreements between corporate energy users and renewable developers.

Giorgio Fortunato, Head of Clean Energy and Power Asia Pacific at Google, says: "We're thrilled to build on our collaboration with TotalEnergies in Malaysia. This agreement is a key part of our strategy to make meaningful investments that benefit the economies where we operate. 

“By enabling this new clean capacity, we are supporting local growth of the electricity system hosting our infrastructure."

Google outlines that the CGPP framework supports additionality. This means the investment creates new renewable generation rather than reallocating existing supply, a factor that is increasingly important for data centre operators seeking to align expansion plans with sustainability targets.

Matching energy timelines with digital growth

The Citra solar plant is scheduled to begin construction in early 2026. The Power Purchase Agreement takes effect upon financial close, expected in the first quarter of the same year. This schedule reflects the compressed timelines required to bring new power capacity online in step with data centre deployment.

Energy supply has become a primary constraint on AI expansion. Hyperscale data centres can often be delivered within 18 to 24 months, while new grid transmission projects typically take five to ten years due to permitting and construction complexity. This mismatch creates challenges for operators seeking continuous and scalable power.

Research from Goldman Sachs forecasts that data centre power demand could grow by 160% by 2030, driven largely by AI workloads that require more energy than traditional computing tasks. The International Energy Agency reports that data centres, cryptocurrencies and AI consume around 460 terawatt-hours globally in 2022, with that figure expected to double by 2026.

These projections underline why reliance on municipal grid expansion alone is increasingly difficult for operators planning long-term AI capacity. Dedicated renewable projects offer a way to reduce exposure to grid delays while providing predictable energy supply over decades.

Energy partnerships shape regional growth

The Malaysia agreement builds on earlier collaboration between Google and TotalEnergies, including a renewable PPA announced in November to supply Google’s data centres in the US. The repeated partnership illustrates how long-term relationships between energy producers and hyperscalers can streamline procurement and execution.

Sophie Chevalier, Senior Vice President Flexible Power and Integration at TotalEnergies, says: "We are delighted to strengthen our collaboration with Google through this agreement to supply renewable electricity to their new data centre in Malaysia. 

“This PPA illustrates our Company's ability to offer competitive power solutions tailored to the needs of major tech groups, both in mature markets, such as the US and Europe, and in emerging countries like Malaysia. It also contributes to achieving our target of 12% profitability in the power sector."

Malaysia has positioned itself as a growing destination for data centre investment following Singapore’s pause on new facilities in 2019 due to land and power constraints. Demand has concentrated in regions such as Johor and Kedah, supported by national policy that targets 70% renewable installed capacity by 2050.

The agreement shows how data centre expansion, renewable development and regulatory frameworks are becoming increasingly interconnected as operators secure energy alongside compute capacity.