Meta Platforms is providing support for the continued expansion of this company offering a 6% dividend yield.
Meta Platforms, the tech giant behind Facebook and Instagram, is set to power its expanding data center operations in Texas with renewable energy, thanks to a long-term Power Purchase Agreement (PPA) with energy company Enbridge.
The agreement, which covers 100% of the renewable electricity output from Enbridge's Clear Fork solar energy project, is a significant step towards Meta's goal of achieving net-zero emissions across its operations by 2030. Located near San Antonio, Texas, the 600-megawatt (MW) utility-scale solar farm is currently under construction and is expected to be operational by summer 2027.
Enbridge, a Canadian energy infrastructure company, has committed $900 million to build the Clear Fork project. This project marks a strategic expansion of Enbridge's renewable energy portfolio and is expected to be accretive to their cash flow and earnings starting in 2027.
The Clear Fork project is not Enbridge's only foray into renewable energy. The company is also developing the Sequoia Solar project, an 815-MW solar project that is on track to enter commercial service in early 2026. Enbridge is investing $1.1 billion into the Sequoia Solar project to support the power needs of AT&T and Toyota.
Meta's investment in clean energy aligns with a broader industry trend where data center operators are securing clean energy through utility-scale solar projects to meet sustainability targets amid rising AI and cloud computing energy demands. Texas, with its favorable land availability, strong solar irradiance, and supportive permitting environment, is a critical renewable hub for such projects.
Meta Platforms, aiming to become a leader in artificial intelligence (AI), plans to invest hundreds of billions of dollars in the coming years in massive data centers for superintelligence. The vast power needs of companies like Meta are benefiting energy companies like Enbridge, enabling them to expand their operations.
Enbridge is currently pursuing about CA$7 billion ($5.1 billion) of renewable projects, part of its CA$50 billion ($36.7 billion) energy infrastructure development pipeline. The Clear Fork project, with its capacity to produce 600 MW upon entering commercial service in mid-2027, is a testament to Enbridge's commitment to a sustainable future.
In essence, Meta's Clear Fork solar farm PPA with Enbridge is a major project that exemplifies Meta's commitment to green power for AI data centers, with full renewable offtake and operational status targeted for 2027. This partnership underscores the growing importance of renewable energy in powering the digital age.
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