Microsoft has taken significant strides in expanding its renewable energy portfolio, further cementing its commitment to sustainable energy. The tech giant recently announced a deal with Brookfield Asset Management to secure 10.5 gigawatts of renewable capacity across the U.S. and Europe. This ambitious agreement is set to be fully realized by 2030, contributing to Microsoft's already impressive renewable portfolio, which boasts over 34 gigawatts of capacity.
In addition to its collaboration with Brookfield, Microsoft has been actively pursuing solar energy projects. The company recently partnered with energy provider AES to develop three solar projects located in Illinois, Michigan, and Missouri. These efforts align with Microsoft's strategy to leverage the cost and speed advantages that renewable energies like solar offer. Notably, utility-scale solar projects can begin generating power within approximately 18 months, providing a timely solution to Microsoft's growing energy needs.
Earlier this year, in February, Microsoft contracted 389 megawatts from three solar projects, two located in Illinois and one in Texas. This move exemplifies Microsoft's regular engagement with solar power initiatives. The company aims to meet the increasing energy demands of its data centers, which have surged due to the rising demand for new computing power. It is projected that up to half of all new AI servers could be underpowered by 2027, highlighting the urgency for expanded energy resources.
Microsoft's renewable energy endeavors extend beyond individual projects. The corporation is anchoring a $9 billion renewable power coalition organized by Acadia. This coalition underscores the tech giant's leadership role in the transition towards sustainable energy solutions and its proactive stance in addressing potential future energy shortages.
While there has been a notable interest among tech companies in nuclear power recently, the prolonged timelines associated with new natural gas and nuclear power plants—many of which are not expected to become operational until after 2027—have kept companies like Microsoft investing heavily in solar power.