It follows a final investment decision from its board of directors for the Permian Energy Centre, which will consist of 420MW of solar and 40MW of battery, able to store power for an hour.
Located in Andrews County in Texas, the solar panels are expected to generate enough electricity to power around 100,000 homes in the US.
Ørsted also estimates around 300 jobs could be created during the peak construction period.
Ørsted CEO Henrik Poulsen, said: “We’re very excited to be moving ahead with the Permian Energy Centre and to be adding solar plus storage to our rapidly growing portfolio of US onshore assets.
“With the completion of the project, Ørsted will have a US portfolio of operating assets that spans the full spectrum of offshore and onshore renewable energy technologies, which we believe is important as we look to offer our customers the most competitive and diverse clean energy solutions into the future.”