Microsoft is adding one other 475 megawatts to its already considerable renewable powered portfolio to feed the growing energy appetite of its data centers. The corporate recently signed a deal with energy provider AES for 3 solar projects across the Midwest, one each in Illinois, Michigan, and Missouri.
The ramp up reflects the immediacy of Microsoft’s needs. In terms of powering data centers, it’s hard to argue with solar. Quick to put in, inexpensive, and modular, it’s an ideal fit for tech firms that need electricity now.
Microsoft has been tapping solar with some regularity. In February, it contracted 389 megawatts from three solar projects across Illinois and Texas. And late last yr, the corporate announced it was anchoring a $9 billion renewable power coalition that’s organized by Acadia. The Redmond-based company’s own renewable portfolio already includes over 34 GW of capability.
While tech firms have shown increasing interest in nuclear power in recent months, the fee and speed benefits of renewables have kept solar deals flowing.
Though renewable power by itself doesn’t have the identical consistency as nuclear or natural gas, developers are increasingly pairing it with battery storage to supply across the clock electricity.
The mixture is dearer than solar or wind by itself, but given the rapid declines in cost for each solar and batteries, so-called hybrid power plants are starting to encroach on prices for a brand new natural gas generating capability.
Up to now, latest nuclear prices have remained significantly higher than either renewables or natural gas power plants.
For tech firms and data center developers, time is of the essence. Demand for brand new computing power has risen at such a rate that as much as half of all latest AI servers could possibly be underpowered by 2027. Most latest natural gas and nuclear power plants aren’t scheduled to return online until several years after that.
But renewables can start supplying power quickly, with utility-scale solar projects starting to provide electrons in about 18 months.
That speed has proven attractive, resulting in some massive deals: Microsoft, for instance, signed a cope with Brookfield Asset Management last summer for 10.5 gigawatts of renewable capability within the U.S. and Europe, all of which might be delivered by 2030.
