Microsoft made biggest-ever renewable energy deal to fuel its AI ambitions

Microsoft has just agreed to support the development of 10.5 gigawatts of new renewable energy capacity around the world, a huge amount of electricity to power its AI ambitions and climate goals.

For comparison purposes, 10.5 GW of renewable energy is equivalent to almost half the amount of solar and wind capacity California has in 2022. This is literally a big deal – in fact, the largest corporate deal to purchase renewable energy to date, according to BloombergNEF. Microsoft yesterday signed the agreement with Brookfield Asset Management, which he said The deal is nearly eight times larger than what was previously the largest corporate power purchase agreement ever signed.

BloombergNEF estimates that it could cost between $11.5 and $17 billion to build this new capacity, which is expected to come online between 2026 and 2030. (Microsoft and Brookfield declined to confirm the dollar value recorded.)

Brookfield says the deal allows it to invest in new renewable energy projects in the US, Europe, Latin America, Asia and the Pacific. Microsoft would purchase the power generated at each new location.

To be carbon negative by the same date, it will be necessary to capture any remaining emissions that it has not been able to reduce with clean energy. But carbon capture is still prohibitively expensive and unproven at scale, while solar energy has become the main energy source. cheapest energy source in history.

“Microsoft wants to use our influence and purchasing power to create a lasting positive impact for all electricity consumers,” said Adrian Anderson, general manager of renewable energy, carbon-free energy and carbon dioxide removal at Microsoft, in a statement. communicated. Press release.