How Google is Powering AI Data Centres With US Solar Energy

Google operates an estimated 130 large-scale data centre locations globally.

The company has committed to purchasing power from what will be the largest solar facility in the US when construction completes in 2029.

The Steel River Energy Center in Mississippi County, Arkansas, is being developed by Cypress Creek Energy with the tech company serving as anchor investor and offtaker.

The groundbreaking ceremony for the project took place in Arkansas, marking the official start of construction on what represents a significant expansion of renewable energy infrastructure in the region.

State officials and company representatives attended the event to commemorate the beginning of development.

American steel supply chain

According to Google, the project will generate 2.5GW at peak performance once operational.

The facility will also add 2.9GWh of energy storage capacity to the regional grid, representing a substantial increase in clean energy availability for the state and surrounding areas.

The project distinguishes itself through its commitment to domestic manufacturing.

Mississippi County produces more steel than any other county in the US and the facility will use structural steel manufactured entirely within the state.

US Steel's Big River facility will supply the material. PACO Steel's plant, located approximately 20 miles downstream of the Mississippi River, will handle manufacturing.

This approach keeps the entire structural supply chain within Arkansas borders, supporting local industry whilst reducing transportation emissions.

To date, Google's data centres deliver more than six times more computing power per unit of electricity, compared to five years ago.

According to Amanda Peterson Corio, Google's Global Head of Data Centre Energy, the location choice was intentional: "Mississippi County is a leader in American steel production," she says.

Amanda also addressed economic benefits for the region: "The project will create 700 local jobs and generating US$300m in tax revenue" over its lifetime, she says. These positions will span construction, ongoing maintenance and operational roles throughout the facility's expected decades of service.

Solar and storage capacity

The first two phases will add 1.6GWdc of solar generation and 1.9GWh of battery storage.

All three phases combined will deliver 2.5GWdc of solar generation and 2.9GWh of battery storage.

According to Google, this capacity could power more than 315,000 Arkansas homes annually, representing a significant portion of the state's residential electricity demand.

Cypress Creek Energy currently operates more than 850 renewable energy projects totalling approximately 19GW of capacity.

Steel River could represent the company's highest profile development to date.

Michael Terrell, Google's Global Head of Advanced Energy, characterised the development as noteworthy: "Today we reached a milestone in Google's global clean energy portfolio: we're purchasing power from our largest solar and storage facility to date."

"Steel River Energy Center, which broke ground today in Arkansas, will also be the largest solar project in the US once fully operational," Michael adds.

Grid reliability and storage

Kate Brandt, Google's Chief Sustainability Officer, emphasised the importance of pairing generation with storage at Steel River: "By pairing massive solar arrays with battery storage, the project can store the sun's peak daytime output and feed it back into the grid exactly when it's needed most." 

"This creates a more reliable, resilient grid that can meet rising electricity demand while keeping power affordable for everyone," Kate adds.

The facility will surpass the Edwards Sanborn Solar and Energy Storage Project in Kern County, California, as the nation's largest solar installation upon completion.

Battery storage allows the grid to access solar power during evening peak demand hours when panels generate no electricity.

The storage component addresses renewable energy's fundamental challenge: intermittency.

Solar generation peaks during midday when electricity demand often sits below its highest point.

Evening hours typically see peak consumption as people return home, yet solar panels produce nothing after sunset.

Google data centres operate with an average annual Power Usage Effectiveness (PUE) of 1.09, using 83% less overhead energy than typical industry data centres.

The perfect PUE ranking is 1.0, making Google's data centres amongst the industry's most efficient.

Battery systems bridge this gap by storing excess daytime generation for release during evening demand spikes.

Google's involvement stems from its electricity consumption, which has grown substantially due to data centre expansion.

Many of these facilities support AI infrastructure rollout, which requires significantly more power per server than traditional computing workloads.

The company's annual energy consumption exceeds that of more than half the world's individual countries.

This has prompted criticism that hyperscale technology companies including Google, Amazon and Microsoft strain local grids and increase electricity costs for residential customers.

Google has contested this characterisation.

The company argues that large loads can lower costs in some cases by financing new infrastructure that residential customers would otherwise fund.

Google is also piloting a new way for its data centres to temporarily reduce power use during peak hours or grid emergencies. 

Alongside Steel River, Google has committed US$5m to energy affordability initiatives in Arkansas.

These include community solar subscriptions for low-income customers in West Memphis, home retrofitting programmes and efficiency upgrades for local schools.

The community solar programme specifically targets households that cannot install rooftop panels due to renting, unsuitable roof conditions or upfront cost barriers.

Participants receive credits on their electricity bills for their share of solar generation from a centralised facility.

Adam Elman, Google's Head of Sustainability for EMEA, suggested infrastructure projects can benefit local areas: "By pairing massive solar arrays with advanced battery storage, we are not just decarbonising the grid; we are proving that large-scale infrastructure can simultaneously drive domestic manufacturing and long-term economic prosperity for local communities." 

Amanda emphasised that Steel River could improve energy accessibility and affordability in the region: "Our responsibility goes far beyond these clean electrons flowing into the grid," she says.

"We know that many families are focused on simply making ends meet right now," Amanda says.

"That's why Google is also funding additional energy affordability initiatives to support Arkansas families, including community solar subscriptions, home improvements and energy efficiency projects in schools."