France-headquartered energy producer TotalEnergies has signed a 21-year power purchase agreement to supply one terawatt hour of solar electricity to Google’s data centres in Malaysia, strengthening long-term corporate demand for renewable business energy in Southeast Asia.

The solar power will be generated by the 29.99-megawatt Citra Energies solar farm in Kedah, northern Peninsular Malaysia. Construction of the project is scheduled to begin in 2026, more than two years after it was awarded by Malaysia’s Energy Commission to a joint venture between local developer MK Land, which holds a 51 per cent stake, and TotalEnergies, which owns 49 per cent.

Engineering, procurement, construction and commissioning of the plant will be carried out by Atlantic Blue, a subsidiary of Malaysian listed renewable energy company Solarvest. TotalEnergies said the power purchase agreement “will take effect upon the project’s financial close, expected in the first quarter of 2026”.

The agreement follows a similar deal signed last month under which TotalEnergies will supply 1.5TWh of solar electricity to Google’s US data centres from its Montpelier solar farm in Ohio. Separately, Google has also agreed to purchase solar power from Japan-based Shizen Energy Group’s planned 29.99MW solar project in Kedah, scheduled for completion in 2027.

Both projects are being developed under Malaysia’s Corporate Green Power Programme, introduced in 2023 to enable corporates to invest in new renewable generation through virtual power purchase agreements. The scheme has since been replaced by the Corporate Renewable Energy Supply Scheme, which allows third-party access to Malaysia’s electricity grid.

Google’s growing regional data centre footprint coincides with Southeast Asia’s artificial intelligence market, projected to exceed US$8.9 billion (€8.2 billion).

Follow the full story to understand how long-term power contracts are reshaping data centre energy strategies.

(Photo Credits to Pixabay)