Microsoft has added an additional 389 megawatts of renewable power to its portfolio to acquire scramble to meet the required electricity demand for AI ambitions.
Additional renewable power spans three solar power projects developed by EDP Renewables North America. Two are in southern Illinois and the other is outside Austin, Texas. Microsoft is buying power in combination to cover nearby operations and renewable energy credits elsewhere.
According to the company’s 2024 Sustainability Report, Microsoft has contracted for approximately 20 gigawatts of renewable energy capacity. This latest purchase adds about 2% to the tally.
The tech giant is gaining power with quick clips to deliver cloud and AI operations. Like many of its friends, Microsoft uses renewable power. This can also allow for quick and inexpensive deployment of wind and solar.
Solar is especially quick. While new gas power plants will take years to build and commission, new solar farms can start producing electricity in just 18 months. Developers are planning projects that can be outsourced in stages, ensuring that they can deliver power to their data centers as quickly as possible.
To enable power 24 hours a day, seven days a week, some renewable developers are turning to hybrid installations. The solar and wind are connected to one or more batteries and are charged when renewable power is discharged. Last week, Amazon signed a contract with one of such developments in Portugal.
The purchase of renewable energy allows Microsoft to enhance its core operations without generating pollution. It could also help Microsoft meet its pledge to be carbon negative by 2030. To gain targets, Microsoft needs to sequester and store more carbon than its operational production.
To reach negative emissions, Microsoft is also investing in a variety of forms of carbon removal, including direct air capture and enhanced rock weathering. Last month, Microsoft announced its contract with Chestnut Carbon in 2023 to purchase more than 7 million tonnes of carbon credits, sufficient to cover about half of the tech company’s emissions.
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