Engie North America has revealed a preliminary arrangement with Cipher Mining to create a power supply contract for a data centre in Texas, US.

This agreement is set to enable Cipher to acquire up to 300MW of renewable energy from one of Engie’s wind energy facilities.

The partnership aims to harness the renewable energy produced by the wind project to supply power to the adjacent data centre.

This initiative is expected to ease congestion in an already overloaded transmission area, tackling issues related to basis risk and energy curtailment.

By connecting the data centre with renewable energy sources, the collaboration seeks to make use of surplus energy during times of excess generation.

This strategic approach is aimed at improving grid stability and reliability in regions such as west Texas, which is recognised for its plentiful wind and solar energy resources.

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Engie North America chief renewables officer and senior vice-president David Carroll said: “Engie is committed to pursuing innovative solutions that maximise the value of renewable generation and improving cost effectiveness of delivering clean energy supply to our customers.

“We are focused on meeting the growing need for power by our customers as they expand their operations in the US, and renewables is an essential part of supplying this increasing demand.”

Engie North America, based in Houston, is committed to promoting the shift towards a carbon-neutral economy.

With a workforce of 98,000 across 30 nations, Engie encompasses the entire energy value chain, from generation to infrastructure and sales.

Last October, Engie North America signed a power purchase agreement with Google to deliver green electricity from its Chillingham solar project in Texas.