TotalEnergies Inks 21-Year Deal to Power Google’s Data Centers in Malaysia

TotalEnergies SE has secured a long-term contract to supply renewable electricity to Google’s data centers in Malaysia, cementing a strategic alliance as the tech giant races to secure clean power for its expanding artificial intelligence infrastructure.

Under the 21-year Power Purchase Agreement (PPA) announced on Tuesday, the French energy major will deliver a total volume of 1 terawatt-hour (TWh) of clean energy over the duration of the contract. The electricity will be sourced from the upcoming Citra Energies solar project, with construction slated to begin in early 2026 to align with Google’s operational timeline in Southeast Asia.

The agreement is expected to come into force in the first quarter of next year, providing Alphabet Inc.’s Google with a stable, decarbonized power source in a region that has become a hotspot for hyperscale investment.

AI Energy Demand Surge The deal underscores the immense energy appetite of the modern digital economy. As AI workloads intensify, data centers are consuming power at rates that often strain local grids. To mitigate this, technology majors are increasingly bypassing traditional utilities to lock in dedicated supply from renewable developers.

For TotalEnergies, the contract offers two decades of guaranteed revenue while accelerating its pivot toward renewables. It follows a similar deal signed last month (November), where the company committed to supplying green power to Google’s facilities in Ohio, USA.

Malaysia as a Data Hub Malaysia has emerged as a critical node in the global data infrastructure map, benefiting from its proximity to Singapore, ample land availability, and government incentives for digital investments. By securing local renewable capacity, Google aims to insulate its operations from fossil fuel volatility while meeting its global carbon-free energy goals.

Brief Summary

TotalEnergies has signed a 21-year agreement to supply a total of 1 terawatt-hour of renewable electricity to Google’s data centers in Malaysia over the contract term. The power will come from a new solar plant beginning construction in 2026. The deal highlights the surging energy needs of AI infrastructure and strengthens Malaysia’s position as a key digital hub in Southeast Asia.

Frequently Asked Questions (FAQs)

Q1: What are the key terms of the deal? 

TotalEnergies will supply renewable electricity to Google in Malaysia for 21 years. The power will be generated by the new Citra Energies solar project, delivering a total of 1 terawatt-hour (TWh) of clean energy over the entire contract period.

Q2: Why is Google locking in power for so long? 

Data centers require massive, uninterrupted power, especially with the rise of energy-intensive AI processing. A 21-year agreement guarantees price stability and supply security while helping Google meet its carbon-reduction targets.

Q3: Why Malaysia? 

Malaysia offers a strategic location for data centers serving Southeast Asia, with lower costs than Singapore and robust connectivity. The government is also actively promoting renewable energy projects to attract tech investment.

Q4: How much power is 1 Terawatt-hour? 

One terawatt-hour is a substantial amount of energy—roughly equivalent to the annual consumption of roughly 100,000 average households. In this deal, that volume is spread over 21 years to support specific facility operations.

Q5: Is this part of a bigger partnership? 

Yes. TotalEnergies and Google have collaborated before, including a recent deal signed in November 2025 to power data centers in Ohio. Energy companies view Big Tech as a prime customer base for their renewable projects due to their creditworthiness and high demand.