The push to capitalize on the thrill around AI has led tech corporations to dramatically expand their data center footprints. That’s been excellent news for corporations like Nvidia, nevertheless it has also led to unprecedented growth in the facility industry.
Recent and expanded data centers are expected to double the sector’s power demand by 2029, in accordance with JLL. In consequence, developers and tech corporations have been working time beyond regulation to lock in capability. Nuclear and natural gas have gotten boosts from the forecasted demand, but few technologies have benefited within the near term like solar.
Though solar energy suffers from what experts call intermittency — it won’t produce if the sun isn’t shining — the upsides have been so significant that corporations have been inking large deals at a rapid pace.
Unlike advanced nuclear reactors, which have yet to be deployed at industrial scale, solar energy is proven technology. And in contrast to recent natural gas power plants, which take years to plan and construct, the common completion time for a brand new solar farm is about 18 months. Plus, it’s considered one of the lowest-cost sources of latest generating capability.
For the reason that start of 2025, tech corporations and data center operators have backed 12 solar deals, each adding greater than 100 megawatts of capability to the grid.
January
Meta kicked off the yr with a 200-megawatt solar take care of multinational electric utility Engie. The acquisition went toward a solar farm near considered one of the corporate’s existing data centers in Texas. On the time of the deal, Meta already had over 12 gigawatts of generating capability in its renewable portfolio.
Later in January, the Stargate AI partnership between OpenAI, Oracle, and SoftBank Group was reported by Bloomberg to be powered, at the very least partly, by solar. SB Energy, which is an element of SoftBank’s portfolio, is anticipated to develop solar installations backed by grid-scale batteries.
Meta closed out the month with one other massive solar deal, this one with Spanish renewable developer Zelestra. The contract was for 595 megawatts of capability.
February
Meta continued its streak in February, investing in a 505-megawatt solar project with Cypress Creek Renewables, which is developing the large installation in Coleman County, Texas — about 150 miles northwest of Austin.
Microsoft entered the fray in February, too. The corporate has long been a buyer of renewable energy to power its operations, and added one other 389 megawatts of solar in a take care of EDP Renewables North America. The contract covers three different solar farms, two in Illinois and one in Texas. The purchases have helped Microsoft stay on top of its pledge to power its operations using zero carbon power.
Amazon also made a giant purchase, backing a hybrid project on the Iberian Peninsula that features wind, solar, and pumped-hydroelectric storage. The deal included 476 megawatts total, of which 212 megawatts are solar.
Outside of the U.S., data center operators have also been investing in solar. In India, CtrlS built its own 125-megawatt facility in two phases, the primary half of which was finished in June 2024 with the second accomplished in early February. In South America, Telecom Argentina agreed to purchase electricity from a 130-megawatt solar farm developed by MSU Green Energy.
March
Microsoft added one other three solar developments in March, again specializing in the Midwest. The projects span Illinois, Michigan, and Missouri, they usually’re being developed by AES. Together, they may provide Microsoft with 475 megawatts of capability, adding to its considerable 34-gigawatt portfolio.
Cisco got in the sport with a 100-megawatt deal with X-Elio, a solar developer owned by Brookfield, an asset manager that has bet big on renewables. The ability purchase agreements see Cisco buying capability from two different Texas solar projects.
Meta added one other 200 megawatts of solar to its portfolio in March in a take care of RWE. The solar farm might be built just southeast of Austin.
In Italy, data center operator Data4 signed a 10-year deal with utility Edison Energia to purchase power from a 148-megawatt solar farm northwest of Rome.
More deals likely
As tech corporations race so as to add AI to seemingly every product and possible market, data centers have been expanding to maintain pace. That growth requires power, and few technologies are as well positioned as solar energy.
Utility-scale solar is already considered one of the most affordable forms of latest generating capability without counting subsidies, undercutting every little thing except onshore wind. It’s also quick to deploy and may be commissioned in phases, allowing data centers to attract power before all the project is finished.
Those qualities have combined to present solar a near-term advantage, racking up deals with Big Tech corporations and data center developers. It’s a trend that’s prone to proceed.
