Oracle has signed a virtual power purchase agreement with Scout Clean Energy for most of the output from its 300-megawatt Ranchero Wind Farm in Crockett County, expanding Oracle's investment in more than 1.7 gigawatts of renewable energy projects across Texas.
What did Oracle and Scout agree to?
Scout Clean Energy announced that Oracle signed a VPPA covering a majority of the electricity output from Ranchero Wind Farm, one of Scout's largest operating renewable energy projects.
The agreement is part of Oracle's broader investment in Texas renewable energy as the company expands its data center infrastructure to meet growing demand for artificial intelligence and cloud computing.
Scout Clean Energy Founder and CEO, Michael Rucker: "Oracle is an outstanding partner, and we're proud to be a part of their ambitious investment in Texas renewable energy. Ranchero is one of the cornerstone projects in Scout's portfolio, and this PPA only adds to its outstanding profile."
How does the Ranchero Wind Farm Benefit Texas?
Located in Crockett County, Ranchero Wind Farm began commercial operations in 2019 and has a generating capacity of 300 MW. Scout estimates the project produces enough electricity annually to match the usage of approximately 177,000 homes.
The wind farm is also expected to contribute more than $75 million in property taxes to Crockett County over its lifetime, providing revenue for local public services.
A virtual power purchase agreement is a financial arrangement that allows a company to support renewable generation without directly receiving electricity from the specific facility. Ranchero's output continues to enter the Texas Grid.
What are Oracle's clean energy goals?
Oracle said the agreement supports its goal of matching 100% of electricity used by its custom AI data centers with carbon-free electricity by 2035.
Oracle Head of Infrastructure Planning, Julia Robin: "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."
Oracle's broader Texas investment includes more than 1.7 GW of renewable energy projects. The Ranchero agreement adds an existing wind farm to that portfolio as electricity demand from data centers continues to grow.
