Danish renewables company Ørsted has entered into a power purchase agreement with technology giant Microsoft.
Per the terms of the deal, American multinational Microsoft will buy energy from the 430 megawatt alternating current (MWAC) solar energy center Old 300 in Fort Bend County, Texas.
The development is expected to come online in the second half of next year.
Old 300 Solar Center is located on approximately 2,800 acres of privately owned land located near the City of Needville.
The project represents an investment of more than $400 million (£288m) in the local community.
Adrian Anderson, senior director, renewable energy at Microsoft, said: “On our journey to 100 percent renewable energy, we recognize that innovation and collaboration are fundamental in how we fight against climate change.
“We’re grateful for our collaboration with Ørsted to deliver renewable energy in ERCOT and look forward to continued progress towards a net-zero carbon future.”
Orsted recently completed work on its largest onshore wind farm to date in Texas.
The 130-turbine Western Trail Wind Farm is located on land owned by American billionaire Stan Kroenke, the majority stakeholder in English Premier League club Arsenal.
Vishal Kapadia, senior vice president and chief commercial officer in Ørsted Onshore, said: “Microsoft has ambitious sustainability objectives for their Scope 1, 2 & 3 emissions, and we’re thrilled to support their targets.
“Given the strong alignment in focus on emission reductions between our two organisations, I’m excited about our continued collaboration.”