Energy storage for tech giants. Major investments are launching in the USA.
We have already reported that the U.S. renewable energy market is accelerating rapidly. The best evidence supporting this claim is the simultaneous launch of several major investments in the southern United States. Developers have begun construction of massive battery storage systems along with accompanying solar farms in the states of New Mexico and Texas.
Sun and 720 MWh of capacity in New Mexico
In San Juan County, New Mexico, national developer DESRI, together with investment partner Tierra Adentro Growth Capital, has begun work on two twin projects. These investments will combine photovoltaic farms with a total capacity of 270 MW and large energy storage systems with a capacity of 180 MW and as much as 720 MWh of storage.
The first project, Foxtail Flats, will deliver 170 MW of solar power and a 320 MWh storage system, with electricity under a long-term contract supplied to Los Alamos County. The second project, Four Mile Mesa, includes 100 MW of solar capacity and a 400 MWh storage system. This installation will directly support operations of tech giant Meta and power its data centers.
Both facilities are being built on land owned by the Ute Mountain Ute Tribe. The location is highly advantageous, as it is adjacent to an already operating energy complex and a decommissioned traditional power plant. Engineering and construction work has been assigned to SOLV Energy, while financing is provided by a banking consortium including NORD/LB and Santander. It is estimated that around 600 workers will be employed during construction, providing a strong boost to the local economy. Commercial operation of both installations is scheduled for 2027.
Texas focuses on peak demand management
Equally intensive work has begun in San Antonio, Texas, where OCI Energy and CPS Energy have officially started construction of the large Alamo City storage facility. This modern battery installation will reach a capacity of 120 MW and a storage capacity of 480 MWh.
The project is owned and primarily developed by OCI Energy, but under a long-term agreement CPS Energy, the local utility, will take full operational control. The investment is crucial for the resilience and reliability of the entire Texas grid.
OCI Energy CEO Sabah Bayatli emphasized that the start of construction is the result of years of careful planning, coordination, and hard work. Once completed, the new storage facility will play a key role in ensuring safe and stable grid management during periods of high electricity demand.