Microsoft has partnered with Brookfield Asset Management in a deal exceeding $10 billion aimed at bolstering renewable energy capacity to meet the rising demand for artificial intelligence and data centers. This collaboration, announced on Wednesday, will see Brookfield providing 10.5 gigawatts of renewable energy to Microsoft across the U.S. and Europe between 2026 and 2030. Described as the largest single electricity purchase agreement between corporate partners, this initiative underscores a significant step towards sustainable energy practices.
The renewable energy capacity contracted by Microsoft is notably three times larger than the electricity consumed by data centers in Northern Virginia, the world’s largest data center market. A spokesperson from Brookfield highlighted that this deal will drive over $10 billion in investment towards renewable energy projects.
The agreement has the potential for expansion, with provisions to include additional energy capacity across regions such as Asia, Latin America, and India. The focus will be on deploying wind, solar, and innovative carbon-free technologies.
The United States is witnessing a surge in electricity demand, driven by the proliferation of AI, semiconductor, and battery manufacturing and vehicle electrification. Following a decade of stagnant growth, total electricity consumption in the U.S. is projected to increase by 20% by the end of the decade, according to a recent Wells Fargo Research note.
Microsoft has committed to sourcing 100% of its electricity from zero-carbon energy purchases by 2030, aligning with its broader sustainability goals.
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