Microsoft Backs Renewable Power For Data Centers

May 2024

Technology behemoth, Microsoft Inc. has signed a deal to invest over $10bn in renewable energy development to help power its data centers.

Redmond, Washington-headquartered software to cloud computing technology giant, Microsoft has partnered with Brookfield Asset Management in a significant agreement to support renewable energy development and meet the rising demand for power in artificial intelligence and data centers.

Huge Investment

The deal, announced on Wednesday, involves an investment of over $10 billion to create 10.5 gigawatts of renewable energy capacity in the U.S. and Europe, with additional expansions possible in other regions such as Asia, Latin America, and India.

Wind, solar to account for most capacity

Under the terms of the agreement, Brookfield will deliver renewable energy to Microsoft from 2026 to 2030. This expanded capacity is substantially larger than the 3.5 gigawatts consumed by data centers in Northern Virginia, the world's largest data center market. Focusing on wind, solar, and other new carbon-free technologies, the partnership represents one of the largest single electricity purchase agreements signed between corporate partners.

Surging demand for AI, data centers and more

This investment aligns with Microsoft's commitment to having all its energy needs matched by zero-carbon sources by 2030. The agreement addresses the anticipated surge in U.S. electricity demand due to artificial intelligence, the expansion of semiconductor and battery manufacturing, and the electrification of the transportation sector.

“The sheer scale of this investment underlines just how seriously Microsoft regards renewable and sustainable power’s role in its own consumption,” said Steven Michaels, Co-Founder at ZEUS Investments. “It’s a colossal sum of money and reiterates the part the world’s largest companies can play in changing broader societal attitudes toward energy as we move towards a cleaner future,” he concluded.

Press image for Zeus Investments. Global financial advice



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