Behind Google & TotalEnergies' 21-Year PPA in SE Asia

The meteoric rise of artificial intelligence and its accompanying infrastructure is putting a huge amount pressure on the global energy industry.

The Gen AI boom, which began in earnest in 2022, has precipitated a tidal wave of demand for energy in the past few years.

The data centres which support AI systems are now considered the fastest growing energy consumer of any industry in the world economy, with their demand for electricity growing by 12% a year since 2020, according to the IEA.

As such, energy providers and tech firms are beginning to work more closely than ever before.

A recently brokered 21-year supply deal between France's TotalEnergies and the US's Google speaks to just how far into the future the new leaders of AI are thinking. 

Under the agreement, TotalEnergies is set to deliver one terawatt-hour (TWh) of certified renewable electricity from Malaysia’s Citra Energies solar plant to Google’s regional data operations.

Beyond the headline capacity, the deal reflects the deep structural shift towards dedicated renewable projects that directly support hyperscale power demand.

Malaysia’s drive to scale green power

The Citra Energies facility, awarded to TotalEnergies (49%) and MK Land (51%) by the Malaysian Energy Commission in 2023, sits within Malaysia’s Corporate Green Power Programme (CGPP), which is a framework designed to accelerate corporate access to renewables.

The CGPP enables private off-takers to enter virtual Power Purchase Agreements with solar developers, offering a path around grid-related bottlenecks.

For technology multinationals, this approach provides the crucial guarantee of additionality, ensuring investment results in new renewable capacity rather than reallocated supply.

Giorgio Fortunato, Head of Clean Energy & Power, Asia Pacific at Google, says: "We're thrilled to build on our collaboration with TotalEnergies in Malaysia.

"This agreement is a key part of our strategy to make meaningful investments that benefit the economies where we operate. By enabling this new clean capacity, we are supporting local growth of the electricity system hosting our infrastructure."

Set for construction in early 2026, Citra will come online following Financial Close, scheduled for the first quarter.

The fast-tracked timeline demonstrates how renewable development cycles are tightening to meet the demands of digital expansion.

An energy sector under strain

While AI infrastructure is developing at speed, energy systems face growing pressure. The imbalance between data centre construction and grid reinforcement has made energy provisioning the central constraint on technological growth.

Hyperscale facilities can be operational within two years, but the grid assets required to sustain them may take up to a decade to deliver.

This lag has become a defining challenge in the global energy landscape, forcing corporations to innovate around traditional power procurement models.

According to research by Goldman Sachs, data centre electricity consumption could climb by 160% by 2030.

The IEA also reports that data centres, cryptocurrencies and AI together used around 460 TWh globally in 2022, with demand expected to double by 2026.

Meeting this energy intensity sustainably will depend on projects like Citra that pair long-term commercial certainty with clean generation capacity.

Collaboration and innovation

For TotalEnergies, the partnership with Google builds on its growing portfolio of long-term PPAs with major corporate buyers. A similar deal announced in November will supply renewable power to Google’s US data centres.

Sophie Chevalier, Senior Vice President Flexible Power & Integration at TotalEnergies, says: "We are delighted to strengthen our collaboration with Google through this agreement to supply renewable electricity to their new data centre in Malaysia.

"This PPA illustrates our Company's ability to offer competitive power solutions tailored to the needs of major tech groups, both in mature markets, such as the US and Europe, and in emerging countries like Malaysia. It also contributes to achieving our target of 12% profitability in the power sector."

Southeast Asia’s shifting energy landscape

Malaysia is rapidly positioning itself as a regional energy and data infrastructure hub, helped by Singapore’s 2019 moratorium on new data centres.

Johor and Kedah are attracting a wave of cross-border investment, supported by national clean energy targets.

Under the National Energy Transition Roadmap, Malaysia aims for 70% renewable installed capacity by 2050.

If achieved, this could turn national energy policy into a magnet for foreign investment while demonstrating how grid transformation underpins AI-driven economic growth.