French oil and gas company TotalEnergies has entered into a significant long-term power purchase agreement (PPA) with Google to supply renewable energy for its data centers in Malaysia. This 21-year agreement, announced on Tuesday, will provide a total of 1 TWh of certified renewable electricity, equivalent to 20 MW, sourced from the upcoming Citra Energies solar plant located in the northern province of Kedah. Construction of the solar facility is slated to begin in early 2026, and the PPA will take effect following the project’s financial closure, expected in the first quarter of 2026.
The collaboration underscores TotalEnergies’ commitment to delivering competitive energy solutions tailored for major technology firms, as noted by Sophie Chevalier, Senior Vice President of Flexible Power & Integration at TotalEnergies. She stated, “This PPA illustrates our Company’s ability to offer competitive power solutions tailored to the needs of major tech groups, both in mature markets, such as the United States and Europe, and in emerging countries like Malaysia.”
Growing Data Center Demand in Southeast Asia
Malaysia is emerging as a hub for data centers in Southeast Asia, with a project pipeline that accounts for 3.4 gigawatts (GW), or 60%, of all proposed projects in the region, according to research by Wood Mackenzie. As the demand for data center power continues to rise, analysts predict that by 2035, more than 10% of the electricity demand in both Malaysia and Singapore could be attributed to data center operations alone.
The agreement with Google marks TotalEnergies’ latest effort to expand its portfolio of renewable energy contracts. Recently, the company signed a 15-year PPA to supply renewable electricity to Google’s data centers in Ohio, sourced from a local solar farm. In addition, earlier this month, TotalEnergies secured a ten-year PPA with Data4 to provide renewable electricity for data center sites across Spain.
TotalEnergies aims to enhance its integrated power business, responding to the surging global electricity demand driven by the tech sector. The company’s strategic partnerships with major players like Google are indicative of its commitment to sustainable energy solutions and its role in shaping the future of energy consumption in emerging markets.
