Skip to content

Energy Renewal Dispute Experiencing Substantial Setbacks

Renewable energy company ENGIE expands its Texas operations by partnering with cutting-edge data center startup Prometheus Hyperscale.

Renewable energy competition is falling short, significantly
Renewable energy competition is falling short, significantly

Energy Renewal Dispute Experiencing Substantial Setbacks

In a significant move towards sustainable energy solutions, ENGIE, a leading global energy firm, and Prometheus Hyperscale have announced a partnership to deploy renewable energy resources in Texas. This collaboration aims to power data centers along the I-35 corridor, particularly in and around the Dallas area.

Prometheus Hyperscale, known for its flagship data center in Wyoming and expansions in renewables-rich Colorado and Arizona, has chosen Texas due to its abundance of renewable energy. The Lone Star State is the second-largest in installed solar capacity, with over 43.5 gigawatts, and is projected to add more than 40.8 gigawatts over the next five years, making it the leader in solar capacity additions.

ENGIE, on the other hand, has been actively building its renewable energy and storage portfolio in Texas. Notably, ENGIE has recently secured a 2.4-gigawatt battery storage finance deal with CBRE, the leading global real estate developer.

The partnership between ENGIE and Prometheus will see the former providing renewable energy to power the co-located data centers. ENGIE has also entered a preliminary agreement with Cipher Mining, allowing Cipher to pull up to 300 megawatts from an ENGIE wind farm.

Meanwhile, Prometheus has partnered with XL Batteries, a flow battery startup that offers a scalable, long-duration, non-toxic energy storage solution. This partnership will enable Prometheus to leverage XL Batteries' organic flow battery technology for its energy needs, beyond the capability of conventional lithium-ion battery arrays.

In addition, Prometheus plans to work with Conduit Power, a distributed gas power generation specialist, on an as-needed basis. This could be for backup power or as a temporary solution.

Moreover, Prometheus has shown interest in Oklo's scalable, self-stabilizing, waste-recycling fission power plants. Oklo's technology, which has attracted the interest of the oil and gas producer Diamondback Energy for potential use in Texas' Permian Basin, could potentially be a future energy source for Prometheus.

However, Texas lawmakers have been attempting to burden renewable energy stakeholders with new requirements, while giving oil and gas a pass. Republican State Representative Cody Harris introduced HB 14, a bill that would provide $2 billion in financial support for nuclear projects in Texas.

Despite these challenges, the first co-location projects between ENGIE and Prometheus are expected to be up and running in 2026, with additional sites to be built out beginning in 2027. The co-location of data centers at ENGIE's renewable energy and battery storage sites will help alleviate a congested transmission area and offset basis risk in regions like West Texas.

This partnership between ENGIE and Prometheus marks a significant step forward in the adoption of renewable energy for data centers in Texas, setting a positive example for the industry's future.

Read also:

Latest