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TotalEnergies has signed a 15-year Power Purchase Agreement (PPA) to supply Google with 1.5 TWh of certified renewable electricity.
In a press release, the company said it will source the power from its Montpelier solar farm in Ohio. The project, which is nearing completion, is connected to the PJM grid system—one of the largest in the United States—to support Google’s data center operations in the state.
The latest collaboration also aligns with TotalEnergies’ goal to deliver tailored energy solutions for data centers, which accounted for almost 3% of the world’s energy demand in 2024.
About The Collaboration
TotalEnergies is deploying a 10 GW portfolio in the United States, with onshore solar, wind, and battery storage projects, 1 GW of which is located in the PJM market in the northeast of the country, and 4 GW on the ERCOT market in Texas.
"Strengthening the grid by deploying more reliable and clean energy is crucial for supporting the digital infrastructure that businesses and individuals depend on, said Will Conkling, Director of Clean Energy and Power, Google. He added, "Our collaboration with TotalEnergies will help power our data centers and the broader economic growth of Ohio."
Stéphane Michel, President Gas, Renewables & Power at TotalEnergies, said, "This agreement illustrates TotalEnergies’s ability to meet the growing energy demands of major tech companies by leveraging its integrated portfolio of renewable and flexible assets. It also contributes to achieving our target of 12% profitability in the power sector."
Case Of Power Data Centers In India
India’s data center (DC) industry is witnessing a rapid surge in power demand, driven by the country’s expanding digital infrastructure and cloud adoption.
Over FY26–FY28, demand from data centers is expected to rise by about 300–350 MW per year, compared to 150–250 MW per year during FY22–FY25. This growth will push India’s total data center capacity to 2.4 GW by FY28, up from 1.3 GW in FY25.
According to India Ratings and Research (Ind-Ra), the total capital cost for data centers in India is estimated at ₹500 million to ₹700 million per IT MW, reflecting a capex inflation of 5–10% CAGR between FY21 and FY25.
The report also highlights global trends, noting that in the United States, cloud service providers (CSPs) have leased substantial capacity from large data center real estate investment trusts (REITs). CSPs typically present a stronger counterparty credit profile for DC operators than other enterprise users due to:
More favorable leasing terms,
Strong credit ratings, and
Large operational scale.
For pure-play colocation data center (DC) operators, the risk remains minimal since key infrastructure components — such as buildings, power systems, and HVAC — have a long lifecycle of 10 to 30 years. The only major component with a shorter lifespan is the UPS batteries, which typically last five to eight years and are usually replaced every four to five years to maintain efficiency.
However, technological obsolescence poses a more significant risk for DC projects with cloud operations, as these facilities require regular server upgrades to keep up with evolving technology standards.
In India, this risk has not yet become fully evident. Refurbishment and maintenance capital expenditure (capex) remains relatively low — at 1% to 2% of sales for pure-play colocation DCs and 5% to 6% for cloud or managed services-focused DCs — and is generally accounted for under routine repairs and maintenance.