TotalEnergies closes 21-year solar energy deal with Google in Malaysia

TotalEnergies closes 21-year solar energy deal with Google in Malaysia
TotalEnergies closes 21-year solar energy deal with Google in Malaysia

TotalEnergies has signed a 21-year power purchase agreement (PPA) with Google to deliver 1 terawatt-hour of certified renewable electricity from Citra Energies’ planned solar project in northern Malaysia. The long-term contract is equivalent to about 20 megawatts of capacity and will directly support Google’s data center operations in the country.

The solar plant, located in Kedah province, is scheduled to begin construction in early 2026, and the PPA will come into force at financial close, expected in the first quarter of 2026.

The project was awarded in August 2023 by the Malaysian Energy Commission under the country’s Corporate Green Power Program (CGPP). TotalEnergies has a 49% stake in the development, along with local partner MK Land, which owns the remaining 51%.

The deal underscores the accelerated convergence between hyperscale data center growth and long-term renewable energy procurement in emerging markets. Technology companies like Google are increasingly pursuing direct, long-term power purchase agreements (PPAs) to secure clean electricity in regions where grid decarbonization is still at an early stage.

For TotalEnergies, the agreement reinforces its position as a global provider of tailored energy solutions for large industrial and digital clients, expanding a partnership with Google that already includes renewable energy supply contracts in the United States.

Malaysia has emerged as a key regional hub for data centres, driven by strong digital demand, competitive operating costs and supportive government policies. At the same time, growing demand for electricity from energy-intensive digital infrastructure has intensified pressure on utilities and regulators to expand clean generation capacity.

The CGPP is central to this strategy as it allows corporate buyers to procure renewable electricity directly from new projects, rather than relying solely on the national grid mix. The TotalEnergies-Google deal aligns with this framework by adding new solar capacity rather than reallocating existing supply.

TotalEnergies has been expanding its global PPA portfolio with major corporate buyers including Amazon, Microsoft, Air Liquide, Saint-Gobain and Merck, reflecting a broader trend towards long-term contracted revenues in the energy sector.

At the end of 2025, the French energy major had more than 32 gigawatts of installed renewable generation capacity worldwide and is targeting 35 gigawatts by the end of the year. The company aims to exceed 100 terawatt-hours of net electricity production by 2030, combining renewable energy with flexible assets such as gas-fired generation and energy storage.

The Malaysia deal highlights how major oil and gas companies are leveraging renewable energy to anchor long-term relationships with global technology companies, while supporting national decarbonization goals in fast-growing economies. For Google, the deal advances its strategy of enabling new clean energy capacity in the markets where it operates, rather than relying on offsets or indirect acquisitions.

As demand for data centers continues to rise across Southeast Asia, similar corporate power purchase agreements (PPAs) are likely to play an increasingly important role in shaping regional energy markets and investment flows.

By Charles Kennedy for Oilprice.com

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