by Paris Apodaca
Tesla’s ongoing electricity usage prompted two energy agreements related to solar projects in Arizona and Texas.
The solar agreements with Zelestra and ContourGlobal on Tuesday demonstrate how the company’s clean-energy strategy has evolved alongside its AI ambitions, with utility-scale projects. These deals will generate 600 megawatts (MW) of planned capacity, amid growing energy concerns.
Zelestra develops utility-scale renewable energy projects, while ContourGlobal operates power generation facilities, including large-scale solar. Both supply electricity through long-term Power Purchase Agreements (PPAs).
Tesla signaled that its electricity demand is expected to grow as it expands its artificial intelligence operations. In its 2025 annual report, the company said it is building “Cortex 2” at Gigafactory Texas to increase its AI training compute capacity.
Tesla reported rapid expansion of on-site AI training capacity at Gigafactory Texas. In the first half of 2026 the company more than doubled its Texas compute in megawatt terms, with the new Cortex 2 cluster already operating above 115 MW and further ramps planned through the end of the year and into 2027 to support vehicle autonomy and Optimus software training.
“After starting operations of our first renewable plant in the U.S. in 2025, we are now moving ahead with the construction of our largest renewable project globally, located in one of the country’s most dynamic energy markets”, commented Antonio Cammisecra, Chief Executive Officer of ContourGlobal.
“Securing our biggest PPA ever – and one of the largest of its kind in U.S. renewable history – with an iconic customer like Tesla, a true symbol of the global energy transition, is a testament [to] our ability to deliver tailor-made solutions to our customers’ energy needs,” Cammisecra said in the press release. “This milestone represents a remarkable achievement of our commercial team, which spearheaded a company-wide effort to strike a major deal like this one.”
The agreement between ContourGlobal and Tesla covers a year with an output of 90%, delivering around 900 GWh operationally in 2028. Compared to the PPA with Zelestra, Tesla will have the whole 140 MWac output of the Lumen Farm, Zelestra’s solar farm.
“The Sterling solar plant highlights an engineering feat,” a ContourGlobal spokesperson told the Daily Caller News Foundation (DCNF). The energy plant will be able to provide 16 hours of continuous power per day by a combination of solar panels and battery, covering periods of power after sunset. He added that, “24/7 renewables are not that far away; it’s a matter of 12-18 months for commercial renewables. The commercial viability is not deployed yet.”
Project Sterling pairs approximately 450 MWac of solar capacity with 360 MW / 1.4 GWh of battery storage. That volume of electricity is roughly equivalent to the annual consumption of 90,000 to 95,000 average American households.
ContourGlobal described the hybrid facility as one of the largest solar-plus-storage corporate power purchase agreements of its kind in the United States from a single plant. The project, connected to the Western Area Power Administration grid with transmission rights into California’s CAISO market, is designed to deliver firm renewable power, including after sunset, and is expected to begin commercial operations in 2028. On-site construction is scheduled to start later this year following earlier off-site work.
But the Lumen plant will not reach full operations until 2029. This deal expanded the relationship between Zelestra and Tesla, which received multiple agreements in 2024 in Spain, where the company signed a 57 MWac PPA .
“As a trusted global partner, we can deliver bespoke solutions for clients in multiple geographies. As such, we are excited to expand our relationship with Tesla to the US,” Phil North, Zelestra’s US CEO, told DCNF.
The Lumen Farm project in northeast Texas will supply Tesla with the full 140 MWac output once operational, with construction expected to begin in 2027. 140 MWac is the alternating-current capacity delivered to the grid that is enough, on an annual basis, to supply roughly 24,000–28,000 average U.S. homes.
The agreement expands an existing partnership as Zelestra previously signed a 57 MWac PPA with Tesla in 2024 covering solar plants in Spain.
Tesla did not immediately respond to DCNF’s request for comment.
“We aim to deliver the project and bring the new solar plant online as quickly as possible to support Tesla’s growing energy needs in Texas,” North concluded.
Minnesota recently worked on phasing out one of its largest coal-powered plants in favor of solar, demonstrating the broader shift to solar amid the energy crisis in America caused by AI data centers.
The Trump administration worked on expanding its non-binding Ratepayer Protection Pledge on Thursday, which required companies to cover their energy cost, the Daily Caller News Foundation previously reported.
The Trump administration claims that with their pledge, electricity prices will decrease for everyday Americans.
“Electricity bills for American families will actually come down,” Trump said, according to the AP. “They’re going to have a lot of electricity left over, and they’ll put that into the grid.”
The agreements reflect a broader shift in the US energy sector, where technology companies are locking in long-term electricity supplies to support AI growth. That trend comes as the Trump administration argues that expanding generation capacity will ultimately make power more abundant and less expensive for American households.
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Paris Apodaca is a reporter at Daily Caller News Foundation. Executive Editor of The Tennessee Star and The Star News Network Christina Botteri contributed to this report.
