Project Kati will make use of behind-the-meter power generated by the wind project. Credit: Carlos Cid/Shutterstock.

EDF Renewables North America and Abu Dhabi Future Energy Company (Masdar) have signed a power purchase agreement (PPA) with data centre developer and operator Soluna Holdings.

The agreement involves Soluna purchasing up to 166MW of energy from the Las Majadas wind project to power a new data centre, Project Kati, near the wind project’s substation.

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Located in Willacy County, southern Texas, the Las Majadas wind project entered operation in 2021 and has a total capacity of 273MW.

Project Kati will use behind-the-meter power produced by the wind project while reducing operations during specific market conditions when the grid requires energy.

EDF Renewables associate director of capital improvements portfolio management Gabe Messercola stated: “Behind-the-meter offtake opportunities present a unique advantage for market-exposed renewable projects by physically delivering a portion of a plant’s power directly to a co-located buyer’s facility. We are pleased to collaborate with Soluna to secure a win-win situation.”

The PPA structure offers a flexible way to overcome transmission limits and curtailment issues, providing an alternative to tap unused electricity.

Data centre electricity consumption, driven by the AI boom, is expected to reach 1,000 terawatt hours globally. Renewable energy is set to be a crucial source of power for data centres, enabling suppliers to achieve their net zero goals.

Masdar Americas director of asset management Dustin Priemer stated: “As data centres continue to expand across the US, energy demand is rising exponentially, putting increasing pressure on infrastructure.

“This agreement not only provides an innovative solution to maximise the efficiency of electricity generated at Las Majadas, but also allows Soluna to power its new data centre with renewable energy — helping to ease concerns about the strain on the grid.”

In September 2024, EDF Renewables North America entered a 20-year PPA with Omaha Public Power District to supply clean energy from its 300MW Milligan 1 wind project.