On July 28, developer ContourGlobal announced that Tesla has inked a long-term power purchase agreement with an Arizona-based solar and battery project, which is backed by KKR. According to the announcement, KKR will supply Tesla with 90% of the electricity generated by the Sterling project. The project is slated to commence operations in 2028, boasting a solar power generation capacity of 509 megawatts and a four-hour battery energy storage capacity of 360 megawatts. This agreement marks a relatively uncommon move for Tesla, underscoring the growing demand for power purchase agreements in the U.S. market amidst tightening electricity supplies due to the proliferation of AI-driven data centers. Over the years, other tech behemoths have also entered into such contracts, serving as a major driving force behind the boom in the solar and wind energy sectors. The integration of renewable energy projects with battery technology has emerged as an effective strategy to swiftly bring new capacity online, especially in regions where utility companies are grappling to meet escalating demand.