Meta, a leading technology company, has signed a significant solar power deal to secure 650 megawatts (MW) across projects in Kansas and Texas, further expanding its renewable energy portfolio. American utility and power generation company AES is currently developing the solar-only projects, with 400 MW to be deployed in Texas and 250 MW in Kansas, as reported to TechCrunch.

The solar power deal is part of Meta's commitment to power its data centers, which have been expanding to support the company's growing artificial intelligence (AI) operations. Meta's renewable power portfolio now exceeds 12 gigawatts (GW) of capacity. AES typically signs new power purchase agreements two to three years before they begin commercial operations, with the average term for such deals being 15 to 20 years, according to spokesperson Katie Lau.

This marks the fourth solar deal that Meta has announced this year, all of which are located in Texas. The previous deals include one at 595 MW, another at 505 MW, and the final two at 200 MW each. Texas has emerged as a hub for solar development, leading the nation in new solar capacity installed in 2023 and 2024, according to the Solar Energy Industries Association. The state's abundant sunshine, expedited permitting, and rapid grid connections have contributed to its solar growth.

Permitting and grid connections are crucial for the swift deployment of new solar capacity. With these in place, a solar farm can be constructed in a matter of months rather than years. Additionally, new solar is one of the most cost-effective forms of new generating capacity, even before subsidies are considered.

Data centers, like those operated by Meta, do not need to wait for construction to be completed, as solar farms can be phased in. Electricity can start flowing before the project is fully completed. In a press release, AES CEO Andrés Gluski highlighted solar's "fast time-to-power and low-cost electricity" as key attributes that have attracted hyperscalers like Meta to invest in solar energy.