Data Centers Energy Needs: TotalEnergies, Google Sign Agreement

Surging power demand from data centers driven by artificial intelligence and cloud services is intensifying pressure on Mexico’s electricity system, mirroring global trends illustrated by large-scale renewable PPAs in the United States. In Mexico, planned data center expansions of more than 1,500MW through 2030, concentrated in hubs such as Querétaro, are colliding with grid capacity constraints, connection delays, and the need for new generation and transmission investment. The shift affects hyperscale technology firms, energy producers, grid operators, and policymakers, making grid modernization, renewable integration, and coordinated planning critical for sustaining digital investment, industrial growth, and energy reliability.

The global demand for energy to feed data centers continues its rapid acceleration, underscoring a widening challenge for energy systems and digital infrastructure worldwide. This dynamic was highlighted recently in a major renewable energy deal in the United States, illustrating how technology giants and energy producers are innovating to meet the vast power needs of data centers amid surging demand driven by artificial intelligence, cloud computing, and digital services.

French energy major TotalEnergies has signed two long-term power purchase agreements to deliver one gigawatt of solar capacity to supply Google’s data centers in Texas over a 15-year period. The renewable electricity, equivalent to approximately 28 terawatt-hours, will be generated by two TotalEnergies-owned solar projects under development in the state: the 805 MW Wichita site and the 195MW Mustang Creek project, with construction expected to begin in the second quarter of 2026. This represents the largest renewable PPA volume TotalEnergies has signed in the United States to date.

The agreements respond directly to the challenge of delivering reliable and affordable clean power for large-scale data operations. Google’s clean energy leadership emphasised that the deal will add much-needed new generation capacity to the local electricity system and enhance grid reliability, an essential factor as computing workloads tied to artificial intelligence and cloud services continue their exponential growth.

In parallel developments across the United States, energy providers are adjusting capital expenditure plans and securing additional power agreements as demand from data center clients grows. Duke Energy recently raised its five-year capital plan to more than US$100 billion, with data center load constituting a large share of future power demand.

These global developments offer a critical lens on energy challenges that Mexico is already confronting. The Mexican data center market has entered a period of unprecedented expansion, with industry projections showing significant growth in power demand over the coming decade. According to the Mexican Association of Data Centers (MEXDC), energy consumption by data centers in Mexico is expected to increase sharply as new facilities come online, with 73 planned data centers projected to drive an additional energy requirement of nearly 1,500MW over the next five years.

Mexico is emerging as one of the largest data center markets in Latin America, second only to Brazil in capacity and expansion. Installed data center power in the country exceeded 1,269MW, with projects under development reflecting the growing interest of global cloud and hyperscale operators. However, this rapid expansion brings the energy challenge into stark relief: developing a reliable, resilient and sustainable power supply infrastructure capable of meeting both current and future demand.

An MEXDC report presented in late 2025 highlighted that between 2025 and 2030, data center capacity could expand by more than 1,500MW, supported by investments exceeding US$18 billion and generating approximately 96,000 jobs. This growth indicates strong momentum but also underscores that infrastructure constraints, especially in the national grid, may hamper development if left unaddressed.

Mexico’s grid faces the dual challenge of absorbing new digital infrastructure loads while maintaining reliable service for industry and households. Observers have noted that existing capacity will need to scale quickly to avoid supply bottlenecks, particularly as AI-driven services increase usage intensity. Growth in computing workloads is expected to push data center energy demand in Mexico from around 305MW today to more than 1.5GW by 2030, raising questions about grid readiness and investment in generation capacity.

Queretaro has emerged as a strategic data center hub in Mexico, attracting projects from global operators and serving as a focal point for addressing energy bottlenecks. ODATA’s largest data center campus in the country, with up to 300MW of IT capacity planned, illustrates both the scale of investment and the urgency of energy supply solutions, with developers working to expand critical substation and transmission infrastructure to support this growth.

Despite these opportunities, energy supply challenges resonate beyond investment announcements. Reports have described situations where data centers in central Mexico temporarily relied on gas generators due to delays in grid connections, highlighting the practical consequences of infrastructure constraints. This points to a broader need for coordinated planning between energy producers, distribution companies, and data center developers to ensure seamless integration of new facilities into the grid.

Energy policy experts and industry leaders are increasingly calling for Mexico to align its energy strategy with the digital transformation underway. This includes investing in generation capacity, grid modernization, and incentivizing renewable energy adoption within the data center sector. Operators are exploring various solutions, including onsite renewable generation, power purchase agreements and energy efficiency measures to manage operational costs and sustainability goals.

Global trends also reinforce the importance of renewable energy integration. Data center energy consumption worldwide could nearly double by 2030 as AI and cloud adoption accelerates, making clean energy procurement and innovative power solutions essential components of sustainable digital infrastructure planning. Mexico’s proximity to the United States and its growing role as a data hub create unique opportunities to collaborate on cross-border energy strategies, leveraging clean energy sourcing and grid enhancements to support digital growth.