• Cypress Creek Energy has closed $3.5 billion in financing for Phases 1 and 2 of the Steel River Energy Center in Arkansas.
• The first two phases will deliver 1.63 GW of solar and 1.9 GWh of battery storage to the regional grid.
• Full buildout is expected by 2029, with 2.45 GW of solar and 2.9 GWh of storage across three phases.

Arkansas Project Draws Major Capital Backing

Cypress Creek Energy has secured $3.5 billion to advance one of the largest solar and battery storage developments in the United States.

The financing covers Phases 1 and 2 of the Steel River Energy Center in Arkansas. Together, the first two phases will add 1.63 gigawatts of solar capacity and 1.9 gigawatt-hours of battery storage to the regional grid.

The project is being developed in three phases. Once fully built, it is expected to provide 2.45 GW of solar generation and 2.9 GWh of battery storage by 2029.

For U.S. power markets, the deal lands at a critical moment. Electricity demand is rising from data centers, industrial growth, manufacturing reshoring, and broader electrification. Utilities and corporate buyers are under pressure to secure reliable, low-carbon power at scale.

Steel River gives Arkansas a larger role in that transition. It also places Cypress Creek among the developers able to attract capital for grid-scale clean energy assets in a tighter financing environment.

Banks Back Large-Scale Clean Energy Infrastructure

The financing drew strong interest from lenders, according to Cypress Creek. The company said the process was highly competitive and reflected demand for large energy infrastructure projects backed by experienced sponsors.

The financing was fully underwritten by Barclays, BNP Paribas, Santander, and Wells Fargo as initial coordinating lead arrangers. Cypress Creek also closed tax equity financing with a major tax equity investor.

Long-term power sales for Phases 1 and 2 have been secured through a virtual power purchase agreement with an investment-grade corporate counterparty. That structure gives the project greater revenue visibility and supports long-term bankability.

For investors, the package shows how large U.S. renewable projects are being financed through layered structures. Construction debt, tax equity, and corporate offtake remain central to moving major assets from development into operation.

Kevin Smith, Chief Executive Officer, Cypress Creek Energy, said: “This financing reflects both the scale of the project and the strong support we’re seeing from the capital markets for high-quality energy infrastructure projects backed by experienced sponsors. We value the confidence and partnership of this exceptional group of financial institutions, many of whom we’ve worked with across prior transactions. Together, we’re advancing infrastructure that can help meet Arkansas’s and America’s rapidly growing electricity demand while delivering long-term economic benefits to local communities.”

Strategic Partners Structure the Deal

The transaction brought together global banks and legal advisers with deep experience in energy infrastructure finance.

Barclays served as coordinating lead arranger, joint bookrunner, and Green Loan Agent. BNP Paribas acted as coordinating lead arranger, joint bookrunner, and Hedge coordinator.

Santander served as coordinating lead arranger, joint bookrunner, and administrative agent. Wells Fargo acted as coordinating lead arranger, joint bookrunner, Hedge coordinator, and Green Loan Agent.

Skadden, Arps, Slate, Meagher & Flom LLP and Affiliates advised Cypress Creek Energy as legal counsel. Barclays and Santander also acted as M&A advisers to support the transaction.

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Andrew Platt, Head of Energy Structured Finance & Advisory US, Santander Corporate & Investment Banking, said: “We are proud to have led the financing for these landmark projects and to have supported Cypress Creek Energy throughout every stage, from development through construction. We value our strong relationship and congratulate Cypress Creek Energy and its partners on this significant achievement.”

Alok Garg, Head of Project & Asset Finance, Wells Fargo Corporate & Investment Banking, said: “Wells Fargo is pleased to support Cypress Creek Energy as they pursue their strategy to build large scale energy infrastructure to satisfy growing electricity demand.”

What Executives and Investors Should Watch

The Steel River financing is not only a project-level deal. It reflects a broader shift in U.S. energy finance.

Corporate buyers are using virtual power purchase agreements to secure clean energy exposure and hedge electricity-related emissions. Banks are still willing to fund large renewables platforms when projects have scale, experienced sponsors, and contracted revenues.

Battery storage is also becoming central to the investment case. Solar generation alone cannot solve peak demand or grid reliability challenges. Storage adds flexibility and supports integration of intermittent renewable power.

For Arkansas, the project brings capital investment, local economic activity, and new grid resources. For the broader U.S. market, it adds another major renewable asset to a power system under strain from demand growth.

C-suite leaders should read the deal as a sign that clean energy infrastructure remains financeable when risk is structured well. For investors, Steel River shows where capital is moving: large, contracted, storage-backed renewable platforms that can serve both climate goals and load growth.

The regional importance is clear. The project will expand low-carbon capacity in the U.S. South, where power demand is climbing fast. Its global relevance is also hard to miss. As governments and corporations pursue energy security and decarbonization, projects of this size are becoming core infrastructure, not niche climate investments.

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