Google Taps TotalEnergies For Clean Power To Run Malaysia Data Centers

TotalEnergies (NYSE:TTE) on Tuesday penned a 21-year power purchase agreement (PPA) with Alphabet Inc.’s (NASDAQ:GOOG) Google.

Details

As per the deal, Google will source 1 TWh of certified renewable electricity, equivalent to 20 MW, from the Citra Energies solar project in northern Kedah.

The solar facility is set to begin construction in early 2026 and will supply clean power to support Google’s data center operations in Malaysia.

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Malaysia’s Energy Commission awarded the project in August 2023 to TotalEnergies, which holds a 49% stake, and its local partner MK Land, which owns 51%, under the country’s Corporate Green Power Programme.

The deal aligns with Google’s approach to adding new clean energy capacity to the grids where it operates and builds on a power purchase agreement TotalEnergies announced in November to supply renewable electricity to Google’s U.S. data centers.

The power purchase agreement will become effective once the project reaches financial close, which is expected in the first quarter of 2026.

Sophie Chevalier, Senior Vice President Flexible Power & Integration at TotalEnergies added, “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 United States and Europe, and in emerging countries like Malaysia. It also contributes to achieving our target of 12% profitability in the power sector.”

This new agreement follows TotalEnergies’ 15-year PPA deal with Google that was penned last month. As per it, Google will receive 1.5 TWh of certified renewable electricity from TotalEnergies’ nearly completed Montpelier solar farm in Ohio.

Recent Events

In a separate release today, the company stated that it sold a 9.998% indirect stake in Malaysia’s block SK408 to PTTEP, retaining a 30.002% interest.

This month, TotalEnergies disclosed that TotalEnergies EP Nigeria has agreed to sell a 40% interest in the PPL 2000 and PPL 2001 exploration licenses to a Chevron Corporation (NYSE:CVX) company.

In November, TotalEnergies also disclosed that it will acquire a 50% stake in the flexible power generation portfolio from Energetický a průmyslový holding, a.s. (EPH) at an enterprise value of 10.6 billion euros ($12.3 billion).

TTE Price Action: TotalEnergies shares were down 0.20% at $65.13 during premarket trading on Tuesday, according to Benzinga Pro data.

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Photo by Vytautas Kielaitis via Shutterstock