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Google and Microsoft Double Down on Renewable Energy to Power AI Data Centers

Google and Microsoft Double Down on Renewable Energy to Power AI Data Centers
Photo by Greg Bulla / Unsplash

In 2023, both Google and Microsoft took significant steps to address the rising energy demands of their AI-driven data centers through major renewable energy deals.

Google's Renewable Energy Push

Google recently signed a deal with Energix Renewables to secure 1.5 gigawatts of solar energy, marking a significant leap toward its goal of running all data centers on 24/7 carbon-free energy by 2030. The agreement will help power the company’s AI applications while moving Google closer to its broader sustainability goals. Google has been steadily working to reduce its overall carbon footprint, aiming to cut emissions by 50% by 2030​ (RCR Wireless News)​(blog.google).

Microsoft's Record-Breaking Clean Energy Deal

Microsoft made headlines by signing the largest-ever corporate power purchase agreement (PPA) for renewable energy, totaling 10.5 gigawatts. This ambitious $11.5 billion deal, with Brookfield Renewable Partners, focuses on solar and wind energy projects that will supply Microsoft’s global data centers. The projects are expected to start construction in 2026 and will play a pivotal role in helping Microsoft meet its commitment to match all its electricity consumption with carbon-neutral energy by 2030​ (pv magazine International).

These investments are not only part of broader corporate sustainability efforts but also a direct response to the massive energy demands driven by AI development. Both companies are racing to ensure that their hyperscale data centers, essential for running AI models like ChatGPT, are powered by renewable energy. With AI poised to grow further, their commitment to clean energy is setting a standard for the tech industry to follow​ (pv magazine International)​(RCR Wireless News).