A Deal Anchored in Data Center Growth

Oracle has signed a Virtual Power Purchase Agreement with Scout Clean Energy covering a majority of the output from the 300-megawatt Ranchero Wind Farm in Crockett County, Texas, the companies announced.

A Deal Anchored in Data Center Growth

The arrangement ties the operating wind project to Oracle's efforts to secure carbon-free electricity for its expanding data center footprint and forms part of the technology company's recently announced investment in more than 1.7 gigawatts of renewable energy projects across Texas.

For Scout, which has owned and operated Ranchero since the project reached commercial operations in 2019, the agreement represents a significant commercial milestone for one of the cornerstone assets in its portfolio. The announcement did not disclose the financial terms of the VPPA, the specific volume of energy contracted, or the duration of the agreement.

The Project Behind the Contract

Ranchero Wind Farm is the largest operating renewable energy project in Scout's fleet. Located in Crockett County, the 300 MW facility generates enough electricity annually to power the equivalent of 177,000 homes.

Over its lifetime, the project is expected to contribute more than $57 million in property taxes to Crockett County, making it a substantial source of local government funding in addition to its energy output. Michael Rucker, Chief Executive Officer and Founder of Scout Clean Energy, described the agreement as an endorsement of the project's standing.

"Oracle is an outstanding partner and we're proud to be a part of their ambitious investment in Texas renewable energy," Rucker said. "Ranchero is one of the cornerstone projects in Scout's portfolio and this PPA only adds to its outstanding profile."

How a Virtual PPA Works

Under a VPPA, the buyer enters into a financial contract for differences tied to a renewable project's output rather than taking physical delivery of the electricity itself. The structure has become a common vehicle through which large corporations contract for renewable energy, allowing buyers to support projects on the grid while claiming the associated clean energy attributes. The Scout-Oracle agreement follows this model, covering a majority of Ranchero's output without the transfer of physical power.

Oracle's 2035 Clean Energy Target

For Oracle, the Ranchero agreement supports a stated goal of matching 100 percent of the electricity used by its custom AI data centers with carbon-free sources by 2035. Julia Robin, Head of Infrastructure Planning for Oracle Cloud Infrastructure, linked the deal directly to the company's approach to managing AI-driven demand for computing capacity.

"Oracle is committed to developing data centers responsibly, especially as AI demand grows. This includes investing in carbon-free electricity that supports the Texas grid," Robin said.

"The Ranchero Wind Project supports our goal to match 100 percent of our custom AI data center electricity with carbon-free electricity by 2035, while enabling a more reliable, resilient, and affordable energy system for Texans."

The agreement is one component of Oracle's broader Texas procurement portfolio, announced alongside the company's investment in more than 1.7 GW of renewable energy projects in the state. The announcement did not identify which additional projects are included in that investment beyond Ranchero.

Scout's Scale and Backing

Scout Clean Energy, headquartered in Boulder, Colorado, is a renewable energy developer, owner, and operator. The company has developed approximately 2,000 MW of operating and under-construction renewable energy assets in the United States, of which 1,200 MW are owned and operated by Scout.

Led by renewable energy industry veterans, the company is developing a pipeline exceeding 22,000 MW of wind, solar, and storage projects across 23 states. Scout is a portfolio company of Brookfield, the global investment firm whose backing supports the company's development and ownership activities across its multi-state pipeline.

Texas as a Corporate Procurement Hub

The transaction underscores the position of Texas as a central market for both wind development and corporate renewable procurement. Oracle's 1.7 GW commitment ranks among the larger announced corporate renewable investments in the state, and Ranchero, operating in Crockett County since 2019, sits within the state's wind resource region.

The new agreement directs a majority of the project's output toward Oracle's clean energy matching goals while the wind farm continues to deliver tax revenue to the local county.

The deal is the latest instance of a major technology company contracting directly with an operating wind project in Texas as part of a broader renewable energy investment strategy in the state.