ENGIE teams up with Cipher Mining to power Texas data center

Rhea-AI Summary

ENGIE North America has signed a preliminary agreement with Cipher Mining (NASDAQ:CIFR) to provide power for Cipher's Texas data center. The agreement would enable Cipher to purchase up to 300 megawatts (MW) of clean energy from ENGIE's wind facilities. The strategic collaboration involves co-locating the data center with the wind project, which helps address transmission congestion and curtailment challenges in West Texas. This arrangement aims to utilize surplus energy during excess generation periods while contributing to grid stability. The partnership showcases ENGIE's commitment to delivering renewable energy solutions and strengthens its position as a leading global provider of power purchase agreements.

Positive

• Access to 300 MW of clean energy capacity for Cipher's data center operations
• Strategic co-location with wind facility reduces transmission congestion and curtailment risks
• Enhanced grid stability through efficient use of surplus energy
• Partnership with major renewable energy provider ENGIE strengthens power supply reliability

Negative

• Agreement is still preliminary and not yet executed
• Dependence on wind energy may introduce intermittency risks

HOUSTON, May 13, 2025 /PRNewswire/ -- ENGIE North America (ENGIE) announced it has entered into a preliminary agreement with Cipher Mining Inc. (NASDAQ:CIFR) ("Cipher") to enter into a power supply agreement to power a Cipher data center in Texas. Once executed, the agreement would allow Cipher to purchase up to 300 megawatts (MW) of clean energy from one of ENGIE's wind facilities.

The new arrangement would leverage the wind project's renewable energy generation to power the co-located data center, helping to alleviate an already congested transmission area. This helps offset basis risk and mitigate curtailment challenges especially in regions like West Texas, where wind and solar resources are abundant but often face constraints due to transmission bottlenecks and curtailment.

By pairing the data center with renewable energy, this strategic collaboration supports the use of surplus energy during periods of excess generation, while enhancing grid stability and reliability.

"ENGIE is committed to pursuing innovative solutions that maximize the value of renewable generation and improving cost effectiveness of delivering clean energy supply to our customers," said David Carroll, Chief Renewables Officer & SVP, ENGIE North America. "We are focused on meeting the growing need for power by our customers as they expand their operations in the U.S. and renewables is an essential part of supplying this increasing demand."

This agreement continues to reflect ENGIE's position as one of the leading providers of power purchase agreements globally.

About ENGIE North America
Based in Houston, Texas, ENGIE North America Inc. is a regional hub of ENGIE, a major player in the energy transition, whose purpose is to accelerate the transition towards a carbon-neutral economy. With 98,000 employees in 30 countries, the Group covers the entire energy value chain, from production to infrastructures and sales. ENGIE combines complementary activities: renewable electricity and green gas production, flexibility assets (notably batteries), gas and electricity transmission and distribution networks, local energy infrastructures (heating and cooling networks) and the supply of energy to local authorities and businesses. Every year, ENGIE invests more than €10 billion to drive forward the energy transition and achieve its net zero carbon goal by 2045. ENGIE (ENGI), is listed on the Paris and Brussels Stock Exchanges.  For more information on ENGIE in North America, please visit our website at www.engie-na.com or our LinkedIn page at www.linkedin.com/company/engie-north-america-inc.

Contact:
ENGIE North America
Michael Clingan, External Relations
Michael.clingan@external.engie.com
832-745-6057

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SOURCE Engie North America Inc.

FAQ

What is the power capacity agreement between ENGIE and Cipher Mining (CIFR)?

ENGIE and Cipher Mining have entered a preliminary agreement for up to 300 megawatts (MW) of clean energy supply from ENGIE's wind facilities to power Cipher's Texas data center.

How will the CIFR data center location benefit from ENGIE's wind facility?

The co-location of the data center with ENGIE's wind facility helps reduce transmission congestion, mitigate curtailment challenges, and enables efficient use of surplus energy during periods of excess generation.

What are the advantages of Cipher Mining's (CIFR) power agreement with ENGIE?

The agreement provides access to 300 MW of clean energy, reduces transmission risks through co-location, enhances grid stability, and ensures reliable power supply from a leading renewable energy provider.

Where will Cipher Mining's (CIFR) new data center powered by ENGIE be located?

The data center will be located in Texas, co-located with ENGIE's wind facility, specifically in a region where wind and solar resources are abundant.