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Energy giant switches on first phase of $1.1 billion Texas solar farm set to power AT&T and Toyota

The project's launch also reflects a broader shift across the energy sector.

by Wyatt FischerMay 31, 2026
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Aerial view of a large solar panel field with numerous panels arranged in rows on green grass.

Photo Credit: iStock

Sequoia Solar, in Callahan County, Texas, has officially brought its first 400 megawatts of capacity online. That first phase is now operating, while a second 415-megawatt phase is due online before the end of the year.

Together, the two phases will bring the project to 815 megawatts, placing it among the continent's largest solar developments, according to Electrek. Power from the project is being sold under long-term purchase agreements to AT&T, Toyota, PepsiCo, and Donaldson Company.

The project's launch also reflects a broader shift across the energy sector. Even companies with long ties to fossil fuels are investing more in renewable energy as utilities and major businesses look for stable, long-term sources of cleaner electricity.

Texas is at the center of that growth, as solar and battery projects continue to spread while statewide electricity demand rises.

Why does it matter?

Adding hundreds of megawatts to the grid can help meet rising electricity demand and ease strain on power systems, especially in fast-growing states such as Texas.

Solar can also make energy costs more predictable over time because sunlight is free and not subject to the same fuel-price swings as coal or gas. For companies like AT&T, that translates into lower operating costs and less pollution tied to their operations.

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As more electricity comes from solar instead of pollution-heavy sources, communities can see cleaner air and lower levels of smog-forming emissions linked to fossil fuel power generation.

What can I do?

Homeowners can also pair solar panels with efficient electric appliances to bring costs down even further. Upgrades such as heat pumps, induction stoves, and better insulation can make a home more efficient and help stretch the value of every kilowatt generated.

For homeowners looking to make the switch to solar, EnergySage can help you go solar by offering free tools and connecting you with local installers to save you up to $10,000. If you're not ready to buy, Palmetto's $0-down LightReach solar leasing program can lower your utility rate by up to 20%.

For the companies purchasing power from Sequoia, the payoff is already straightforward. Toyota said the project aligns with its Environmental Challenge 2050 plan, while AT&T said it will use the electricity to "help lower energy costs and reduce emissions tied to its operations."

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