Tesla Signs Arizona and Texas Solar Power Agreements
Tesla signed two long-term power purchase agreements announced July 28: about 90% of the output from ContourGlobal's 450 MWac solar-plus-storage project in Arizona and all output from Zelestra's planned 140 MWac solar farm in Texas. The projects target commercial operation in 2028 and 2029, respectively; neither developer disclosed pricing or identified the Tesla loads the electricity will serve.
Tesla signed two long-term power purchase agreements for planned solar projects in Arizona and Texas, according to announcements and reporting published July 28. Together, the agreements cover roughly 590 MWac of solar capacity, but the projects are not yet operating and their financial terms were not disclosed.
Project Sterling in Arizona
ContourGlobal says Tesla will buy about 90% of the as-generated annual output from Project Sterling in Mohave County. The project combines 509 MWp, or 450 MWac, of solar generation with 360 MW of four-hour battery storage, equal to 1.4 GWh of storage capacity.
The developer expects the plant to produce more than 1 TWh a year. Construction activity has begun, first energization is planned for the third quarter of 2027, and commercial operation is targeted for the first quarter of 2028. The project will connect to the Western Area Power Administration system and has transmission rights into California's CAISO market.
ContourGlobal's project page is the originating first-party source for the Arizona agreement. Independent Business Insider reporting also describes the Tesla offtake and places it in the context of the company's broader energy and compute expansion.
Lumen Farm in Texas
Zelestra separately said Tesla agreed to buy the entire output of its planned 140 MWac Lumen Farm solar project in northeast Texas. Reporting based on the company's statement says construction is expected to begin in 2027, with full operations anticipated in 2029.
The Texas agreement extends an existing relationship: Zelestra signed a 57 MWac power purchase agreement with Tesla in Spain in 2024. The latest statement did not disclose the Texas project's exact location, price or contract duration.
Neither developer identified the Tesla factories, charging sites, data centers or other loads that will use or be matched to the purchased electricity. The agreements therefore show future renewable-power procurement, not current generation and not proof that a particular AI facility will receive the power. For infrastructure planners, that distinction matters when translating announced capacity into an operating energy supply.
Key Points
- 1Tesla agreed to buy about 90% of Project Sterling's output; the Arizona project combines 450 MWac of solar with 360 MW of four-hour battery storage and targets commercial operation in early 2028.
- 2Tesla will buy all output from Zelestra's planned 140 MWac Lumen Farm in northeast Texas, which is expected to begin construction in 2027 and reach full operation in 2029.
- 3The developers did not disclose pricing or identify the Tesla loads the electricity will serve, so the agreements should not be described as power already available to a specific AI facility.
Scoring Rationale
The two PPAs cover about 590 MWac of planned solar capacity plus a large Arizona battery system, making them relevant to long-range energy procurement, while both projects remain future developments with undisclosed pricing and end-use allocation.
Sources
Primary source and supporting public references used for this report.
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