The push to capitalize on the excitement round AI has led tech firms to dramatically increase their knowledge middle footprints. That’s been excellent news for firms like Nvidia, nevertheless it has additionally led to unprecedented development within the energy business.
New and expanded knowledge facilities are anticipated to double the sector’s energy demand by 2029, in accordance with JLL. Because of this, builders and tech firms have been working extra time to lock in capability. Nuclear and pure fuel have gotten boosts from the forecasted demand, however few applied sciences have benefited within the close to time period like photo voltaic.
Although solar energy suffers from what specialists name intermittency — it received’t produce if the solar isn’t shining — the upsides have been so important that firms have been inking massive offers at a fast tempo.
Not like superior nuclear reactors, which have but to be deployed at industrial scale, solar energy is confirmed know-how. And in contrast to new pure fuel energy vegetation, which take years to plan and assemble, the common completion time for a brand new photo voltaic farm is about 18 months. Plus, it’s one of many lowest-cost sources of recent producing capability.
Because the begin of 2025, tech firms and knowledge middle operators have backed 12 photo voltaic offers, every including greater than 100 megawatts of capability to the grid.
January
Meta kicked off the yr with a 200-megawatt photo voltaic deal with multinational electrical utility Engie. The acquisition went towards a photo voltaic farm close to one of many firm’s present knowledge facilities in Texas. On the time of the deal, Meta already had over 12 gigawatts of producing 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, not less than partially, by photo voltaic. SB Power, which is a part of SoftBank’s portfolio, is predicted to develop photo voltaic installations backed by grid-scale batteries.
Meta closed out the month with one other large photo voltaic 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 photo voltaic undertaking with Cypress Creek Renewables, which is creating the large set up in Coleman County, Texas — about 150 miles northwest of Austin.
Microsoft entered the fray in February, too. The corporate has lengthy been a purchaser of renewable power to energy its operations, and added one other 389 megawatts of photo voltaic in a take care of EDP Renewables North America. The contract covers three completely different photo voltaic farms, two in Illinois and one in Texas. The purchases have helped Microsoft keep on prime of its pledge to energy its operations utilizing zero carbon energy.
Amazon additionally made a giant buy, backing a hybrid undertaking on the Iberian Peninsula that features wind, photo voltaic, and pumped-hydroelectric storage. The deal included 476 megawatts complete, of which 212 megawatts are photo voltaic.
Outdoors of the U.S., knowledge middle operators have additionally been investing in photo voltaic. In India, CtrlS constructed its personal 125-megawatt facility in two phases, the primary half of which was completed in June 2024 with the second accomplished in early February. In South America, Telecom Argentina agreed to purchase electrical energy from a 130-megawatt photo voltaic farm developed by MSU Inexperienced Power.
March
Microsoft added one other three photo voltaic developments in March, once more specializing in the Midwest. The tasks span Illinois, Michigan, and Missouri, and so they’re being developed by AES. Collectively, they are going to present Microsoft with 475 megawatts of capability, including to its appreciable 34-gigawatt portfolio.
Cisco received within the sport with a 100-megawatt deal with X-Elio, a photo voltaic developer owned by Brookfield, an asset supervisor that has guess large on renewables. The ability buy agreements see Cisco shopping for capability from two completely different Texas photo voltaic tasks.
Meta added one other 200 megawatts of photo voltaic to its portfolio in March in a take care of RWE. The photo voltaic farm will probably be constructed simply southeast of Austin.
In Italy, knowledge middle operator Data4 signed a 10-year deal with utility Edison Energia to purchase energy from a 148-megawatt photo voltaic farm northwest of Rome.
Extra offers probably
As tech firms race so as to add AI to seemingly each product and doable market, knowledge facilities have been increasing to maintain tempo. That development requires energy, and few applied sciences are as properly positioned as solar energy.
Utility-scale photo voltaic is already one of many most cost-effective types of new producing capability with out counting subsidies, undercutting all the things besides onshore wind. It’s additionally fast to deploy and might be commissioned in phases, permitting knowledge facilities to attract energy earlier than all the undertaking is completed.
These qualities have mixed to provide photo voltaic a near-term benefit, racking up offers with Large Tech firms and knowledge middle builders. It’s a pattern that’s more likely to proceed.
