TotalEnergies Signs 21-Year Renewable Solar Power Deal With Google

TotalEnergies SE TTE has confirmed a long-term 21-year deal to supply clean electricity to Google’s Malaysian data centers. Set to commence construction in early 2026, the Citra Energies solar farm will deliver renewable energy to power Google’s data center operations in the country.

New Deal Extends TTE’s Existing Collaboration With Google

Google wants to utilize clean energy for its new AI based data centers and has been entering into long-term agreements with power providers for 24/7 supply of clean electricity. Last month, Google selected TotalEnergies to supply renewable power for its data centers in the United States.

The new contract to supply clean energy to Google’s data center in Malaysia seems to be an extension of the existing partnership of both these companies. TotalEnergies has been successfully providing clean energy to its customers across the globe, with is also acting in favour of this multi-energy provider.

How Will This Deal Benefit TTE?

This long-term renewable power supply deal will secure a stable revenue stream for the company. 

This deal will allow TotalEnergies to tap deeply into growing opportunities in the Southeast Asian region in the long run, as this region is experiencing rising demand for power supply due to the establishment of new data centers. The company is set to build a renewable power plant in Malaysia, providing access to the Malaysian market and offering strong, sustainable growth potential.

This new deal is in sync with TotalEnergies’ long-term vision on clean energy generation. The company is gradually building a portfolio of low-carbon businesses that could account for 15-20% of sales by 2040.

Rising Demand for Clean Energy

The demand for clean energy is rising due to the development of large AI-based data centers, usage of more electric vehicles and higher usage of residential customers. Given the expected increase in clean energy demand, the power providers are also expanding their clean energy generation capacity.

TotalEnergies continues to expand its clean energy generation capabilities to meet growing customer demand. Gross installed renewable power generation capacity was 32.3 GW at the end of the third quarter of 2025, up from 24.2 GW at the end of the third quarter of 2024.

Other operators have also outlined their goals to generate more energy from clean energy sources. With the changing demand scenario, these companies continue to make upward revision in their generation capacity.

Price Movement of TTE

Over the past six months, TTE’s shares have risen 5.4%, which beat the industry’s growth of 1.5%.

Zacks Rank & Key Pick

TTE currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the same sector are BKV Corporation BKV, Cenovus Energy Inc. CVE, and Natural Gas Services Group, Inc. NGS, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 stocks here.

The Zacks Consensus Estimate for BKV, CVE and NGS' year-over-year 2025 EPS growth is pegged at 385.45%, 26.23% and 13.29%, respectively.

The Zacks Consensus Estimate for BKV, CVE, and NGS’ 2025 earnings has increased 48.11%,11.59% and 9.46%, respectively, in the past 60 days.

 

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This article originally published on Zacks Investment Research (zacks.com).

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