RWE has entered into a virtual power purchase agreement with Oracle covering 433 megawatts of electricity generation, with power to be drawn from three existing wind farms in West Texas, the German energy company announced on September 17, 2026.

Agreement Details and Project Locations

The virtual power purchase agreement, commonly referred to as a VPPA, will supply electricity from RWE's Panther Creek I, II and III wind farms, located across Sterling, Howard, and Glasscock counties in West Texas.

The deal forms part of a broader portfolio of power investments announced by Oracle, which collectively represents more than 1.7 gigawatts of electricity generation capacity supporting the Texas grid.

Under the structure of a VPPA, the power generated by the Panther Creek facilities feeds into the Texas grid rather than being delivered directly to Oracle's facilities. The arrangement is designed to support Oracle's data center operations in the state.

Oracle's Broader Energy Strategy

Oracle stated that the agreement with RWE advances its goal of matching 100 percent of its artificial intelligence data center electricity use with carbon-free electricity by 2035. Julia Robin, Head of Infrastructure Planning and Sourcing for Oracle Cloud Infrastructure, said the company is committed to developing data centers responsibly by investing in renewable energy, strengthening the local power grid, and helping ensure that electric bills and grid stability are not impacted.

"Our work with RWE advances our goal of matching 100 percent of our AI data center electricity use with carbon-free electricity by 2035 while supporting a more reliable, resilient, and affordable energy system for the State of Texas," Robin said.

The 433 MW secured through RWE represents a significant portion of the more than 1.7 gigawatts Oracle has identified across its broader Texas power investment portfolio, underscoring the scale at which the technology company is seeking to procure energy as demand from AI-driven data centers continues to grow.

The Panther Creek Wind Farms

The three wind farms at the center of the agreement are not newly constructed assets.

Panther Creek I and II were repowered in the third quarter of 2019, while Panther Creek III underwent repowering in 2021.

The use of existing, already-operational projects means RWE is able to deliver power capacity at speed, without waiting for new development timelines. Over the course of their operational lifetimes, the three projects are expected to generate more than USD 70 million in property tax revenues for Sterling, Howard, and Glasscock counties. According to RWE, those funds support schools, roads, emergency services, and other essential public services in the region.

RWE Americas' Position in the U.S.

Market

Ingmar Ritzenhofen, Chief Commercial Officer of RWE Americas, framed the agreement as an example of how large energy users can take an active role in meeting their own power needs while contributing to broader grid reliability. "America's growing energy needs require reliable, long-term power solutions delivered at speed and at scale," Ritzenhofen said.

"With nearly two decades of U.S. development, construction, and operations experience, RWE Americas is helping customers like Oracle secure the power they need while strengthening grid reliability and supporting affordable energy for Texans."

RWE described its continued U.S. expansion as focused on delivering domestically produced energy, supporting grid reliability, and meeting the energy demands of manufacturing, data centers, and broad-based electrification. The company noted it has been involved in U.S. development, construction, and operations for nearly two decades.

Growing Intersection of Renewable Energy and Data Center Demand

The agreement reflects a wider trend in which technology companies operating large-scale data center infrastructure are turning to long-term renewable energy contracts to manage both their carbon commitments and their exposure to energy costs.

VPPAs have become an increasingly common tool for corporations seeking to support renewable generation without requiring direct physical delivery of power to their facilities.

For Texas, which operates its own largely independent power grid through ERCOT, large-scale corporate procurement agreements such as this one carry implications for overall grid supply.

Oracle's total portfolio of more than 1.7 gigawatts represents a substantial injection of generation capacity into a grid that has faced scrutiny over reliability following high-demand weather events in recent years.

RWE's Panther Creek wind farms, already operational and recently repowered, are positioned to begin contributing to Oracle's energy accounting without the delays associated with greenfield project development. The West Texas location, a region long associated with strong and consistent wind resources, supports the generating profile of the three facilities.