
Microsoft’s 400 MW solar investment fuels its AI aspirations
- Business
- February 12, 2025
Microsoft has expanded its portfolio of renewable energy sources by 389 megawatts as the tech giant tries to fulfill the power demands necessary to support its AI goals.
Three solar projects created by EDP Renewables North America—two in southern Illinois and one outside Austin, Texas—are responsible for the increased renewable energy. Microsoft is purchasing green energy credits to offset demand elsewhere and a combination of electricity to power its local businesses.
Microsoft’s 2024 sustainability report states that the corporation has contracted for almost 20 gigawatts of renewable energy capacity. This most recent acquisition raises the total by about 2%.
The IT giant has been rapidly acquiring power to support its AI and cloud operations. Microsoft, like many of its competitors, has embraced renewable energy, partly due to the rapid and affordable deployment of solar and wind.
Solar is particularly quick. A new solar farm can begin generating electricity in as little as 18 months, but new gas power plants require years to construct and commission. In order to supply data centers with electricity as soon as feasible, developers have started organizing projects that may be put into service in stages.
Some developers of renewable energy are using hybrid installations to provide power around the clock. One or more types of batteries are linked to solar and wind power, and they are charged while renewable energy is growing and discharged when it is decreasing. One such Portuguese development inked a contract with Amazon this week.
Microsoft is able to power its key activities without creating pollution thanks to its acquisitions of renewable energy. Additionally, it might assist Microsoft in fulfilling their commitment to achieve carbon neutrality by 2030. Microsoft will need to store and sequester more carbon than its operations generate in order to meet the goal.
Microsoft has also made investments in reforestation, increased rock weathering, direct air capture, and other carbon removal techniques in order to achieve zero emissions. Microsoft and Chestnut Carbon announced last month that they would purchase nearly 7 million tons of carbon credits, which would cover over half of the tech company’s emissions in 2023.