OCI Holdings breaks ground on Texas solar project amid AI power boom

OCI Holdings, a subsidiary of OCI Energy, officially marked the start of construction on the 260-megawatt SunRoper solar project in Wharton County, Texas on Tuesday. The joint venture between OCI Energy and Israeli renewable energy developer Arava Power is part of a growing trend as electricity demand from artificial intelligence (AI) data centers surges, driving growth in renewable power sources.

The 50-50 partnership aims to span 1,714 acres and is projected to commence commercial operations in 2027. Upon completion, the solar farm will be capable of generating enough electricity to power approximately 60,000 households.

Financing for the project has been secured through a long-term power purchase agreement signed in February with a Fortune 100 company, the specifics of which were not disclosed. OCI Holdings Chairman Lee Woo-hyun, OCI Energy President Sabah Bayatli, and Arava Power CEO Ilan Zidkony were present at the groundbreaking ceremony. OCI Energy has a history of developing utility-scale solar projects in Texas since 2012, having generated and sold approximately 2 gigawatts of capacity in the U.S. market.

The company's expansion in this sector has been propelled by the increased demand for AI data center construction, which has amplified the need for renewable energy sources over the past two years.