QTS has signed a 48 MWac solar power purchase agreement (PPA) with ENGIE to supply renewable electricity to its data center operations in Irving, Texas, adding new clean-energy capacity to the company’s power strategy as data center electricity demand continues to rise.
The agreement was executed alongside a long-term PPA between ENGIE and ABEI Energy, securing renewable generation from ABEI Energy’s Lubio Solar project in Kaufman County, Texas. The three-party arrangement connects solar generation, energy supply and data center demand through a single renewable power procurement structure.
For QTS, the agreement expands its use of long-term renewable energy procurement to support the growing electricity requirements of its Texas data center footprint. ENGIE said the structure combines renewable generation with retail power supply and energy management capabilities.
Lubio Solar to Supply QTS Data Center Operations
Lubio Solar is an approximately 61 MWac solar project in Kaufman County that ABEI Energy is developing.
The project is currently at the pre-commercial-operation stage and is expected to generate approximately 150 GWh of electricity annually once operational. ENGIE estimates the solar facility will avoid about 100,778 metric tons of carbon dioxide emissions each year.
Under the arrangement, QTS will procure 48 MWac of the project’s solar generation through its agreement with ENGIE.
The transaction also represents ABEI Energy’s first renewable energy deal with ENGIE in the United States. The companies already have an established relationship in Europe, and the Texas agreement extends that partnership into the U.S. renewable energy market.
The solar project will add renewable generation to the ERCOT market, one of the largest and fastest-growing electricity markets in the United States.
QTS Expands Renewable Power Strategy for Data Centers
The agreement builds on a long-standing relationship between QTS and ENGIE as the data center operator seeks energy solutions that can accommodate increasing electricity demand while supporting its sustainability objectives.
QTS said the agreement will support the long-term sustainability and operational resilience of its Texas footprint. The company will receive renewable energy through a retail supply arrangement, allowing it to combine renewable procurement with the electricity supply required for its data center operations.
The structure also reflects a broader shift in the data center industry, where operators are securing long-term electricity arrangements to support facilities with increasingly intensive computing loads.
As artificial intelligence and cloud computing drive demand for additional data center capacity, operators are increasingly looking beyond conventional grid procurement to secure renewable generation through PPAs and other long-term energy arrangements.
The QTS agreement provides one example of that approach, linking a specific solar project in Texas with electricity demand from data center operations in the state.
QTS is also tapping the debt markets as it expands its data center construction pipeline. On August 18, 2026, Bloomberg reported that Blackstone-backed QTS had commenced a bond sale to help fund data center construction, adding a financing component to the company’s broader expansion strategy. The development comes as QTS continues to secure long-term power arrangements for its growing portfolio, including the 48 MWac renewable PPA with ENGIE in Texas.
ENGIE Expands Renewable Energy Footprint in ERCOT
The QTS agreement also strengthens ENGIE’s renewable energy position in the ERCOT market.
ENGIE has developed a large portfolio of renewable generation across North America and has increasingly worked with technology and data center customers to structure long-term power agreements around their electricity requirements.
The company said its renewable corporate PPA business allows it to combine generation, retail electricity supply and energy management services into customized arrangements for large commercial customers.
ENGIE ranked first globally in BloombergNEF’s 2025 corporate PPA market benchmark, according to the company, after signing 3.6 GW of PPAs during 2025. Its total contracted capacity reached 13.8 GW between 2011 and 2025.
The QTS agreement adds another data center customer to that renewable procurement portfolio while giving ENGIE another project through which to expand its presence in Texas.
Solar Power Supports Growing Data Center Demand
The agreement comes as data center development accelerates across the United States and operators seek additional electricity to support cloud computing and artificial intelligence workloads.
Texas has become one of the country’s largest data center markets, while ERCOT continues to manage rapidly growing electricity demand from large industrial and technology customers.
The scale of that growth is illustrated by major hyperscale developments elsewhere in the country. Amazon, for example, has increased its planned investment in northwest Louisiana to $18 billion and added a third data center campus in Shreveport, expanding its planned cloud and AI infrastructure in the region.
The Amazon development also includes significant investment in supporting power and water infrastructure, underscoring how the growth of data centers is creating demand not only for new computing facilities but also for additional electricity generation, grid infrastructure and resource planning.
Against that backdrop, the QTS-ENGIE agreement shows how individual data center operators are securing renewable generation alongside broader grid power arrangements.
Project Factsheet
- Project: QTS renewable energy procurement agreement
- Data center operator: QTS
- Energy supplier: ENGIE
- Renewable generation developer: ABEI Energy
- Power purchase agreement: 48 MWac
- Data center location: Irving, Texas
- Solar project: Lubio Solar
- Solar project location: Kaufman County, Texas
- Solar project capacity: Approximately 61 MWac
- Expected annual generation: Approximately 150 GWh
- Expected annual emissions avoidance: Approximately 100,778 metric tons of CO₂
- Market: ERCOT
- Solar project status: Pre-commercial operation
- PPA structure: QTS-ENGIE renewable PPA executed alongside ENGIE-ABEI Energy long-term PPA
- Primary application: Renewable electricity supply for QTS data center operations
- ABEI Energy’s U.S. milestone: First renewable energy deal with ENGIE in the United States
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