The frenzy to capitalize on the thrill round AI has led tech corporations to dramatically increase their information middle footprints. That’s been excellent news for corporations like Nvidia, however it has additionally led to unprecedented progress within the energy business.
New and expanded information facilities are anticipated to double the sector’s energy demand by 2029, in keeping with JLL. Because of this, builders and tech corporations have been working time beyond regulation to lock in capability. Nuclear and pure gasoline 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 gained’t produce if the solar isn’t shining — the upsides have been so important that corporations have been inking giant offers at a speedy tempo.
In contrast to superior nuclear reactors, which have but to be deployed at business scale, solar energy is confirmed expertise. And in contrast to new pure gasoline energy crops, 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 latest producing capability.
Because the begin of 2025, tech corporations and information middle operators have backed 12 photo voltaic offers, every including greater than 100 megawatts of capability to the grid.
January
Meta kicked off the 12 months with a 200-megawatt photo voltaic take care of multinational electrical utility Engie. The acquisition went towards a photo voltaic farm close to one of many firm’s present information 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, no less than partially, by photo voltaic. SB Power, which is a part of SoftBank’s portfolio, is anticipated to develop photo voltaic installations backed by grid-scale batteries.
Meta closed out the month with one other huge 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 solar project 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 vitality 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 venture on the Iberian Peninsula that features wind, photo voltaic, and pumped-hydroelectric storage. The deal included 476 megawatts whole, of which 212 megawatts are photo voltaic.
Exterior of the U.S., information 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 solar 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, they usually’re being developed by AES. Collectively, they may 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 bet big 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 deal with RWE. The photo voltaic farm will probably be constructed simply southeast of Austin.
In Italy, information 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 doubtless
As tech corporations race so as to add AI to seemingly each product and potential market, information facilities have been increasing to maintain tempo. That progress requires energy, and few applied sciences are as nicely positioned as solar energy.
Utility-scale photo voltaic is already one of the cheapest types of new producing capability with out counting subsidies, undercutting every little thing besides onshore wind. It’s additionally fast to deploy and will be commissioned in phases, permitting information facilities to attract energy earlier than the complete venture is completed.
These qualities have mixed to present photo voltaic a near-term benefit, racking up offers with Massive Tech corporations and information middle builders. It’s a development that’s more likely to proceed.