The Daily Dig
Google has agreed to buy the entire initial output of the Steel River Energy Center in Arkansas. The deal, first reported by the Financial Times and confirmed through reNEWS, covers a virtual power purchase agreement for 100% of the project's first phase generation once it comes online in 2029. That initial output totals 1.6GW of solar capacity and 2GWh of battery storage. Financial terms were not disclosed.
The agreement builds on financing Cypress Creek Energy secured earlier for phases one and two of the three phase development. That $3.5 billion package, underwritten by Barclays, BNP Paribas, Santander and Wells Fargo, funds construction and long term operation of 1.63GW of solar and 1.9GWh of storage. A separate tax equity investment closed alongside it.
Cypress Creek CEO Kevin Smith told the FT the agreement is a rare bright spot for the U.S. solar sector. He pointed to rising demand from technology companies as a key driver behind large scale renewable project development right now, even as developers face a tougher financing climate overall.
Cypress Creek has also said long term power sales for phases one and two were secured through a separate vPPA with an investment grade corporate counterparty. The company's public statements do not explicitly confirm that counterparty is Google. Once fully built, Steel River is expected to reach 2.45GW of solar capacity and 2.9GWh of battery storage by 2029, making it one of the larger solar plus storage projects under development in the country.
Snapshot:
Project Name: Steel River Energy Center
Developer: Cypress Creek Energy
Buyer/Offtaker: Google, via virtual power purchase agreement (per FT)
Location: Arkansas
Initial Output vPPA: 1.6GW solar / 2GWh battery storage, committed to Google
Phases 1-2 Capacity (Financed): 1.63GW solar / 1.9GWh battery storage
Full Project Capacity (3 Phases): 2.45GW solar / 2.9GWh battery storage
Expected Operational Date: 2029
Financing Secured: $3.5 billion
Financing Lead Arrangers: Barclays, BNP Paribas, Santander, Wells Fargo
Tax Equity Investor: Major tax equity investor, undisclosed
Phases 1-2 Power Sales: vPPA with investment grade corporate counterparty, not explicitly confirmed as Google
CEO Statement Source: Kevin Smith, Cypress Creek Energy
TheJobWalk Thoughts
A vPPA with a buyer like Google signals real bankability, not just a headline number. For GCs and EPCs, that typically means steadier award timelines, since financing tends to keep pace with construction rather than stalling mid-build. Crews on civil, electrical, and battery storage scopes should expect this kind of project to move on schedule through 2029 rather than slip.
The three phase structure also changes how subs and suppliers should approach bidding. Work won't release all at once. Each phase carries its own financial close, which means separate procurement windows rather than a single bid event. Treat this like three smaller projects on one site, not one massive award.
That sequencing rewards firms that get positioned early. Building a relationship with Cypress Creek or its EPC partners now, ahead of phase two and three procurement, puts a contractor in line for multiple award cycles instead of competing for one shot at the whole job later.
