In a move that underscores the complex and often contradictory energy strategies of Big Tech, Meta has announced a new power purchase agreement (PPA) with Apex Clean Energy to support a solar project in Gonzales County, Texas. The deal, centered on the 144-megawatt (MW) Starling Solar project, is designed to bolster Meta’s renewable energy portfolio. However, the announcement comes at a time of increasing scrutiny over the social and environmental costs of the artificial intelligence (AI) revolution. While Meta continues to invest in solar and wind, it is simultaneously deepening its reliance on fossil fuels to meet the immediate, unrelenting power demands of its expanding data center network.
The Starling Solar project represents a long-standing partnership between Meta, the parent company of Facebook and Instagram, and Apex Clean Energy. According to Apex, the project’s viability was directly contingent on Meta’s financial commitment. Under the terms of the agreement, Meta will claim all "environmental attributes" generated by the facility, which includes Renewable Energy Certificates (RECs) that allow the company to report lower net carbon emissions. Yet, even as Meta adds 144 MW of solar capacity to the Texas grid, the company is moving forward with a 366-MW gas-fired power plant in El Paso to support a separate data center—a move that critics argue undermines its broader climate objectives.
The Shift in Corporate Climate Accountability
The timing of the Starling Solar announcement is particularly noteworthy because it follows Meta’s quiet exit from the Climate Group’s RE100 initiative earlier this year. RE100 is a high-profile global corporate renewable energy initiative that brings together hundreds of large and influential businesses committed to 100 percent renewable electricity. Meta had been a member for a decade, and its departure has raised red flags among environmental advocates and energy analysts.
Meta has defended its decision, stating that its commitment to clean energy remains unchanged. In a statement, the company emphasized that it has contributed more than 30 gigawatts (GW) of new clean energy to various grids across the United States. Despite leaving the formal RE100 pact, Meta maintains a goal to match its annual electricity consumption with 100 percent renewable energy. However, the exit suggests a possible pivot in strategy as the company grapples with the technical challenges of "24/7 carbon-free energy"—a standard that requires matching renewable generation with consumption every hour of the day, rather than just on an annual average.
The challenge for Meta, and its peers like Google and Microsoft, is that AI workloads require a constant, stable supply of electricity. Solar and wind are intermittent by nature; they do not produce power when the sun isn’t shining or the wind isn’t blowing. To ensure that data centers—which house the massive GPU clusters necessary for training AI models—never go offline, tech companies are increasingly looking toward "firm" power sources. In many regions, the fastest and cheapest firm power source remains natural gas.
A Tale of Two Projects: Solar in Gonzales vs. Gas in El Paso
The contrast between the Starling Solar project and the El Paso gas plant illustrates the "all-of-the-above" energy approach currently being adopted by hyperscale data center operators.
The Starling Solar project is expected to be a significant economic driver for Gonzales County. Meta and Apex estimate that the project will generate $27 million in tax revenue over its lifespan and provide $26.3 million in payments to local landowners, many of whom are farmers and ranchers. During the construction phase, which is already underway, the project is expected to create between 400 and 450 jobs. The facility is scheduled to begin operations in 2025.
Conversely, the El Paso project highlights the darker side of the AI boom. To power its new data center in the region, Meta is relying on El Paso Electric to build a 366-MW natural gas plant. Documents revealed that the utility only considered gas-fired options to meet Meta’s specific reliability requirements, bypassing potential battery storage or hybrid renewable solutions. This decision has drawn fire from local community groups and environmentalists who point out that while Meta may "offset" this gas usage by buying solar credits in Gonzales County, the physical emissions and air pollutants from the El Paso plant will still impact local residents and the global climate.
The Growing Hunger of the AI Data Center
Meta’s aggressive expansion is reflected in its real estate footprint. As of April 2024, the company had 28 data center sites across the United States. These facilities are the engines of the modern digital economy, but their energy consumption is staggering. A single AI query can require ten times the electricity of a standard Google search. As Meta integrates AI across its platforms—from generative AI chatbots to sophisticated ad-targeting algorithms—its total energy demand is projected to skyrocket.
Dennis Wamsted, an energy analyst at the Institute for Energy Economics and Financial Analysis (IEEFA), has been a vocal critic of the speed at which these companies are scaling. While Wamsted acknowledges Meta’s historical role in stimulating the renewable energy market, he suggests that the current rush to build AI infrastructure is leading to short-sighted energy decisions.
"I think in some regards they’re taking what could be called the easy way out," Wamsted said. "While I am positive about their past impact on renewables, I am increasingly critical about their current approach, which is to build anything they can get their hands on as fast as they possibly can, and I don’t think that we need AI quite that quickly."
Wamsted argues that the technology exists to power these centers with a combination of solar, wind, and long-duration battery storage, but that the tech industry’s obsession with speed is overriding its environmental commitments.
The Texas Grid Under Pressure
The debate over Meta’s energy use is playing out against the backdrop of a strained Texas power grid. The Electric Reliability Council of Texas (ERCOT), which manages the flow of electric power to more than 26 million Texas customers, has faced record-breaking demand in recent years. This demand is driven by a combination of extreme heatwaves and a massive influx of energy-intensive industries, including cryptocurrency mining and data centers.
In 2023, Texas set multiple all-time records for peak electricity demand, and 2024 is on track to follow suit. Renewable energy has become a lifeline for the state; during the hottest afternoons, solar power often provides the critical margin that prevents rolling blackouts. Renewables accounted for roughly one-third of Texas’ in-state electricity generation last year.
However, the rapid proliferation of data centers has caused alarm among state officials. In August, Governor Greg Abbott directed utility regulators to oversee a comprehensive audit of every data center seeking to connect to the ERCOT grid. The audit is focused not only on electricity consumption but also on water usage. Data centers require millions of gallons of water daily for cooling systems, a significant concern in a state frequently plagued by drought. Under the new directive, data centers that fail to prove they are using water-efficient technologies or that pose a risk to the local supply may be denied grid interconnection.
Implications for the Future of Tech and Climate
The situation in Texas serves as a microcosm for a global challenge. As the world’s largest corporations strive for "Net Zero," the physical reality of their infrastructure needs is often at odds with their public-facing climate pledges. The use of "environmental attributes" or RECs allows companies to claim they are 100 percent renewable on paper, but this accounting method is increasingly viewed as a form of greenwashing if it doesn’t result in a physical reduction of carbon emissions in the real world.
If Meta and its competitors continue to prioritize the rapid deployment of AI over the decarbonization of their supply chains, they risk losing the trust of investors and consumers who have grown accustomed to their leadership in the green energy space. The Starling Solar project is a step in the right direction, providing clean energy and economic support to rural Texas. However, as long as such projects are paired with new gas-fired generation, the net impact on the environment remains a subject of intense debate.
The next few years will be a period of reckoning for the tech industry. As the 2025 operational date for the Starling Solar project approaches, and as Governor Abbott’s audits begin to take effect, the true cost of the AI revolution will become clearer. For now, Meta remains caught between its legacy as a clean energy pioneer and its future as an AI powerhouse—a transition that is proving to be far more carbon-intensive than many had hoped.
