ENGIE signs preliminary deal to power data centre in Texas

ENGIE North America plans to supply up to 300 MW of electricity to Cipher Mining for a Texas-based data centre through a local wind facility.

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ENGIE North America Inc., a subsidiary of the French group ENGIE, has entered into a preliminary agreement with Cipher Mining Inc. to power a data centre located in Texas. Under the terms of this draft agreement, Cipher could purchase up to 300 megawatts (MW) of electricity generated by a wind facility owned by ENGIE in the region.

Joint infrastructure partnership

Cipher Mining’s data centre would be co-located with a wind installation, allowing direct use of local renewable energy output. This approach aims to reduce congestion in an already overloaded transmission area, particularly in West Texas, where wind and solar generation often exceeds available transport capacity.

The project also aims to mitigate basis risk and minimise curtailment losses. Such curtailments are common in regions where energy grids face high constraints despite abundant renewable resources.

Meeting growing power demand

This project comes amid rising power demand in the United States, notably driven by the expansion of data centres and digital operations with high energy requirements. “ENGIE is committed to developing innovative solutions that maximise the value of renewable generation,” said David Carroll, Chief Renewables Officer and Senior Vice President at ENGIE North America, in a statement released on May 13.

Cipher Mining Inc., listed on NASDAQ, develops and operates data centres focused on cryptocurrency mining. The company seeks local energy sources capable of stabilising its long-term operating costs. By combining energy and computing operations at the same site, the company aims to harness surplus production during low-consumption periods.

Optimising existing assets

The proposed project is part of ENGIE’s broader strategy to optimise its renewable assets in North America. The company has already signed multiple power purchase agreements with industrial and technology partners across the United States. ENGIE thus maintains its position as one of the leading global providers of long-term electricity supply contracts.

Finalisation of the agreement remains subject to the execution of definitive contractual documents. No timeline has been disclosed by either party at this stage.

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