Scout Clean Energy, a North American renewable energy developer, owner and operator, has signed a Virtual Power Purchase Agreement (VPPA) with Oracle covering a majority of the electricity output from its operational 300 MW Ranchero Wind Farm in Crockett County, Texas. The agreement forms part of Oracle’s recently announced investment in more than 1.7 GW of renewable energy projects across Texas, aimed at supporting the growing electricity requirements of its artificial intelligence (AI) and cloud computing infrastructure.
The agreement strengthens Oracle’s renewable energy procurement strategy as the technology company expands its data center operations and seeks to increase the use of carbon-free electricity. Through the VPPA, Oracle will financially support renewable electricity generation from the Ranchero Wind Farm as part of its broader efforts to address the environmental impact of its expanding digital infrastructure.
Located in Crockett County, Texas, the Ranchero Wind Farm commenced commercial operations in 2019 and remains Scout Clean Energy’s largest operational renewable energy project. With an installed capacity of 300 MW, the facility generates enough electricity annually to match the electricity consumption of approximately 177,000 homes.
In addition to contributing renewable electricity to the Texas power system, the wind farm is expected to generate more than $57 million in property tax revenues for Crockett County over its operational lifetime, supporting local government services and regional economic development.
Michael Rucker, Chief Executive Officer and Founder of Scout Clean Energy, welcomed the agreement with Oracle, highlighting the Ranchero Wind Farm’s importance within the company’s renewable energy portfolio. He noted that the partnership strengthens the project’s commercial position while contributing to Oracle’s expanding renewable energy investments in Texas.
For Oracle, the agreement represents another step towards its goal of matching 100% of the electricity consumed by its custom AI data centers with carbon-free electricity by 2035.
Julia Robin, Head of Infrastructure Planning for Oracle Cloud Infrastructure, emphasised the company’s commitment to responsible data center development amid increasing electricity demand driven by artificial intelligence technologies.
She stated that investments in carbon-free electricity projects such as Ranchero Wind Farm are intended to support Oracle’s sustainability objectives while contributing to a more reliable, resilient and affordable electricity system in Texas.
The agreement comes as technology companies increasingly pursue long-term renewable energy procurement arrangements to support the rapid expansion of AI computing infrastructure and data centers. Virtual power purchase agreements have emerged as an important mechanism for companies seeking to support renewable energy development without directly purchasing and physically receiving electricity from individual generation facilities.
Under a typical VPPA structure, corporate buyers enter into financial agreements linked to renewable electricity generation, providing developers with revenue certainty while allowing buyers to support clean energy procurement objectives.
Scout Clean Energy, a portfolio company of Brookfield, continues to develop, own and operate renewable energy projects across North America. The partnership with Oracle reinforces the growing connection between renewable energy investment and the electricity requirements of the technology sector.
The Ranchero Wind Farm agreement also highlights the increasing role of wind energy in supporting corporate decarbonisation strategies and addressing the rising power demand associated with AI-driven digital infrastructure in the United States.
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