Google secures 500 MW from EnCap-backed Linea Energy for Texas data center load under ERCOT

A 15-year power purchase agreement will supply 500 MW from the Duffy Solar project in Matagorda County, Texas, to Google’s data center operations. The deal underscores how large-scale technology firms are directly procuring dedicated renewable capacity to manage expanding computational loads in competitive power markets.

Linea Energy, a renewables developer and independent power producer backed by EnCap Investments L.P., has entered a 15-year power purchase agreement with Google for 500 megawatts of capacity from the Duffy Solar project. The installation spans approximately 3,526 acres in Matagorda County, Texas, and will deliver electricity into the Electric Reliability Council of Texas market. Construction is scheduled to begin in the third quarter of 2026.

The solar facility is co-located with the Duffy battery energy storage system, a 235 MWac project already under construction. According to official disclosures, the agreement is designed to supply clean energy directly to Google’s data center operations in the state. Linea Energy functions as a developer and US independent power producer within the EnCap Energy Transition platform, which focuses on low-carbon generation and storage assets.

Google maintains one of the largest corporate renewable energy procurement portfolios globally. The transaction reinforces an emerging pattern among hyperscale operators, which are contracting dedicated utility-scale solar and storage assets to meet around-the-clock computing requirements. ERCOT’s market structure, characterized by rapid demand growth and limited interconnectivity, is prompting large energy users to site renewables near load centers. By pairing solar generation with battery capacity, the arrangement aims to partially mitigate intermittency and bolster local grid support.

For power off-takers, long-term agreements of this size can serve as physical hedges against wholesale price volatility in deregulated territories. For developers, securing a creditworthy counterparty streamlines project financing and reduces merchant risk. The deal also concentrates investment in the Gulf Coast region, where transmission infrastructure is being expanded to accommodate industrial and data center expansion. Market participants may view such bilateral structures as blueprints for managing load growth without relying solely on thermal capacity additions.