How VMO2's Solar Deal Signals a Telco Energy Shift

The volatility of global energy markets is reshaping how telco operators secure power.

With networks expanding and data consumption surging, stable, long-term energy sourcing is moving up the agenda.

Power purchase agreements (PPAs) are emerging as a key tool, enabling telcos to lock in predictable costs while advancing carbon reduction targets.

Virgin Media O2’s latest agreement with egg Power, which will last 10 years, reflects this shift. The operator will source electricity from a new solar farm in Suffolk, in the east of England, due to begin operations in 2027.

The project is expected to supply around 5% of the company’s total energy needs.

The deal builds on a 2025 agreement with The Renewables Infrastructure Group for wind energy.

Combined, these arrangements could account for roughly 20% of Virgin Media O2’s energy supply, supporting both cost stability and the transition to lower-carbon operations across its network footprint.

Building resilience through renewable energy

Virgin Media O2’s solar agreement forms part of its wider ambition to reach net-zero carbon emissions across its value chain by 2040.

The company is focusing on long-term renewable sourcing where it aligns with operational needs, particularly across network sites and infrastructure.

"This agreement with egg Power is the latest step in Virgin Media O2's journey to achieve net zero emissions by the end of 2040,” says Mark Hardman, Director of Finance Operations at Virgin Media O2.

“We are committed to growing and operating our business in a way that's good for people and the planet, where we are cutting carbon, securing renewable energy on a long-term basis, and sourcing renewable energy generation from the UK."

Scaling energy for digital infrastructure

The agreement also underscores the growing intersection between telco and energy infrastructure.

egg Power, a subsidiary of Liberty Growth, is focused on delivering renewable energy solutions to telco operators and other digital infrastructure providers.

Demand is being driven by structural shifts in the industry. The rise of AI workloads, cloud services and connected devices is accelerating energy consumption across networks and data centres alike.

This is placing new pressure on operators to secure reliable, scalable and sustainable power sources.

"This agreement is a further endorsement of our mission to become the clean energy supplier of choice for telcos and digital infrastructure providers in the UK,” says Ilesh Patel, Head of egg Power at Liberty Global.

“With funding in place for more projects, we are excited about the next chapter as we continue to deliver reliable, price-predictable renewable power that strengthens the UK's energy security, underpins long-term growth and meets the needs of large energy users."

Beyond sustainability to responsible business

Virgin Media O2 is also reframing how it approaches sustainability within the business.

Rather than treating it as a standalone function, the company is embedding environmental and social considerations into a broader responsible business strategy.

“We are evolving from a traditional sustainability programme into a broader responsible business strategy,” Dana Haidan, VMO2's Chief Sustainability Officer, explained.

“Because the issues we’re addressing – like climate resilience, digital wellbeing, resource scarcity and many more – go far beyond the traditional boundaries of ESG.

“These are not peripheral issues; they are central to the long-term success of a digital infrastructure company."

PPAs gain momentum across the telco sector

While PPAs have historically been more common in energy-intensive industries such as manufacturing and technology, adoption within telcos is accelerating.

According to RE-Source, nearly 2.5GW of renewable PPA capacity was contracted by the European telco sector between 2013 and October 2023.

Major players including Telecom Italia, Vodafone and Deutsche Telekom have all entered into agreements to support their energy needs.