Microsoft signs biggest renewable energy deal ever for AI expansion
In a landmark move, Microsoft has signed an agreement with Brookfield Asset Management to support the creation of 10.5GW of new renewable energy capacity worldwide. This substantial amount of electricity is designated to fuel Microsoft's growth in artificial intelligence (AI) and achieve its environmental objectives. According to Bloomberg, this deal is the largest corporate commitment to purchase renewable energy ever documented, nearly eight times larger than any previous single corporate power purchase agreement.
Microsoft's AI expansion demands high energy consumption
Microsoft's significant investment in AI, including over $13 billion in OpenAI, necessitates high energy consumption. AI extremely power-hungry and could potentially increase the company's greenhouse gas emissions. The situation poses a challenge to Microsoft's commitment to achieve carbon negativity by 2030, thereby requiring a substantial increase in renewable energy sources globally. Bloomberg estimates that the cost of building new capacity of 10.5GW will range between $11.5 and $17 billion. Microsoft has not disclosed the actual value of the deal.
New renewable energy capacity expected by 2030
The new renewable energy capacity, resulting from the agreement between Microsoft and Brookfield, is expected to be operational between 2026 and 2030. However, official confirmation of these dates has not been provided by either company. Brookfield has stated that this deal will enable them to finance new renewable energy projects across the US, Europe, Latin America, Asia, and the Pacific. Microsoft plans to purchase power generated at each of these new sites.
