U.S. energy company Avangrid has announced a power purchase agreement (PPA) with Amazon to supply its data centers with renewable energy from its Oregon Trail Solar Project, according to a report by Power Technology.

The new 57-megawatt direct current (41-megawatt alternating current) facility, located in Gilliam County, Oregon, is expected to be operational by 2027.

“This agreement reflects Amazon and Avangrid’s commitment to delivering reliable energy solutions that will help meet America’s growing energy needs and support the growth of critical infrastructure,” Avangrid CEO Jose Antonio Miranda said in a statement.

“Oregon Trail Solar builds on our strong presence in Oregon and deep partnership with Amazon, and we’re proud to help power the future with projects that bring lasting economic benefits to local communities, bolster our nation’s energy independence, and maximize energy production.”

This is the second deal between the two companies. The first was a PPA to source wind power from the Amazon Wind Farm Oregon, Leaning Juniper IIA location — also in Gilliam County — with a capacity of 98.4 megawatts.

According to state information, the Oregon Trail Solar Facility was approved to include any combination of wind and solar not exceeding 41 megawatts, including up to 16 wind turbines or up to 400 acres of solar photovoltaic energy generation within a 1,228-acre solar microsite area.

Data centers are highly energy-intensive, consuming 10 to 50 times the energy per square foot of typical office buildings, along with a high rate of water consumption. These facilities collectively account for around 2% of all electricity use in the U.S.

A recent study has shown that bitcoin mining, which is similarly energy-intensive, has increasingly relied on renewable energy to fill its needs and may be helping the energy sector to innovate.

Other leading tech companies, including Google, Meta, and IBM, have launched similar partnerships with renewable energy facilities to help offset their carbon footprint.

However, some experts warn that rapid data center expansion — especially AI-driven operations — could cause electric bills to skyrocket for ratepayers in the region.

The Oregon Trail project is expected to bring 200 jobs and will use over 100,000 solar panels to produce the electricity equivalent to powering 10,000 homes per year, although in this case, it will be powering Amazon’s growing data center needs.

Through this project, solar and wind energy will be used instead of dirty fuels, helping to shift the tide in energy consumption toward more sustainable means, which could help reduce planet-heating pollution.