Phoenix — It’s 12:02 PM MST on May 3, 2026.
NextEra Energy, Inc.’s renewables division has landed a deal to build 3,000 megawatts of solar for Salt River Project in Arizona, tapping into surging electricity demand across the Phoenix area. Salt River Project expects the solar farms online by the close of 2034, estimating enough output to supply roughly 595,000 homes in the state.
The clock is ticking for SRP, the not-for-profit utility covering metro Phoenix, as it races to secure new generation ahead of surging demand. SRP wants to more than double its power system’s capacity by 2035, layering in renewables, natural gas, and battery storage along the way.
One megawatt measures how much power a facility can produce. Under the NextEra agreement, the total comes to 3 gigawatts—SRP is set to purchase 500 MW of solar energy annually from 2029 to 2034, according to KJZZ. NextEra takes on the job of building and running the solar plants, while SRP locks in the power supply.
Data centers account for a hefty share of demand. According to Bill McClellan, SRP’s director of resource acquisition, roughly two-thirds of the utility’s big commercial growth connects directly to data centers. “They are a significant part of our growth,” he told KJZZ. KJZZ
SRP’s Associate General Manager Bobby Olsen said the utility aims to ramp up solar “at the pace required” for its customers. NextEra Energy Resources’ president and CEO, Brian Bolster, said his company is ready to “meet SRP’s needs.” SRP Newsroom
SRP picked NextEra Energy Resources via its 2024 RFP, after a round of competitive bids. The deal, though, isn’t a substitute for SRP’s wider all-source procurement—other developers and tech options remain in the running for future contracts.
The agreement extends a partnership that’s already delivered results. According to SRP, NextEra has developed over 1,000 MW for SRP customers through five projects so far—among them the Sonoran Solar Energy Center, Storey Energy Center, and Babbitt Ranch Energy Center.
The competitive backdrop is anything but quiet. March saw SRP and Invenergy strike a deal for 200 MW of solar plus another 200 MW of four-hour battery storage at the SunDog Energy Center in Pinal County—evidence that the utility is divvying up its expansion across various developers and tech.
NextEra’s win in Arizona lines up with its ongoing drive to expand renewables and storage. Back in April, the company reported that NextEra Energy Resources tacked on 4 gigawatts of fresh renewables and storage origination to its first-quarter backlog—1.3 gigawatts of that in battery storage.
Still, cost hangs over the deal. McClellan told KJZZ that SRP hasn’t locked in a purchase price with NextEra yet, and rollout of the first 500 MW isn’t expected until 2029. That means permitting, equipment prices, and financing could all move before construction even begins.
No trading in U.S. markets Sunday. On Friday, NextEra finished at $96.95, slipping 92 cents from its prior close. The company’s market cap stood at roughly $202.2 billion.
