Microsoft has agreed to a deal which the company describes as the largest single electricity purchase agreement signed between two corporate partners. Partnering with Brookfield Asset Management, Microsoft is investing more than $10 billion to provide power for its artificial intelligence operations at data centers.
The funds will go toward building solar farms, wind turbines and other forms of carbon-free energy sources in the United States and Europe to procure 10.5 gigawatts of clean power. This allocation of energy is substantial, equivalent to powering nearly 8 million homes.
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Microsoft’s deal comes at a time when the energy consumption of data centers is projected to significantly contribute to total U.S. electricity demand in the coming years. Analysts predict that by 2030, data centers could consume enough energy to power a third of the nation. Meeting the electricity demand from data centers in the U.S. over the next five years will require the energy equivalent of 40 new nuclear plants.
Currently, the largest data center market globally is situated in Northern Virginia, where 3.5 gigawatts of electricity are consumed. Microsoft’s plan to secure clean power for its facilities triples this figure, as the company prepares for the amount of energy which will be required to support data centers powering advanced technologies like AI.
[JACK AYLMER]
THE DEMAND FOR AI IS STRAINING POWER GRIDS ACROSS THE GLOBE.
AND MICROSOFT IS BETTING THINGS WON’T SLOW DOWN ANYTIME SOON.
SIGNING A RECORD-BREAKING RENEWABLE ENERGY DEAL – TO HELP.
IT’S THE LARGEST SINGLE ELECTRICITY PURCHASE BETWEEN TWO COMPANIES.
MICROSOFT PLANS TO SPEND MORE THAN $10 BILLION TO POWER THE DATA CENTERS THAT FACILITATE ITS AI OPERATIONS.
BUILDING OUT SOLAR, WIND, AND OTHER FORMS OF CARBON-FREE POWER BOTH HERE IN THE U.S. AND IN EUROPE.
THE MONEY FROM MICROSOFT IS BEING INVESTED WITH BROOKFIELD ASSET MANAGEMENT –
WHICH HAS AGREED TO PROVIDE THEM WITH 10-AND-A-HALF GIGAWATTS OF CLEAN POWER.
IT’S ENOUGH ENERGY TO KEEP NEARLY 8 MILLION HOMES RUNNING.
IN THE PAST, WE’VE TALKED ABOUT HOW ELECTRICITY CONSUMPTION FROM DATA CENTERS IS SET TO DRIVE UP TOTAL U.S. DEMAND IN THE COMING YEARS.
THE ENERGY THEY’RE EXPECTED TO REQUIRE COULD POWER ABOUT A THIRD OF THE NATION BY 2030.
RIGHT NOW, THE BIGGEST DATA CENTER MARKET IN THE WORLD CAN BE FOUND IN NORTHERN VIRGINIA, WHERE 3.5 GIGAWATTS OF ELECTRICITY ARE CONSUMED.
THE POWER SUPPLY MICROSOFT WANTS TO BUILD FOR ITS FACILITIES, IS THREE TIMES LARGER.
IT’S A LOT OF ENERGY JUST TO MAKE SURE NEW TECH LIKE AI IS OPERATIONAL.
BUT WITH U.S. DATA CENTERS EXPECTED TO NEED THE EQUIVALENT OF 40 NEW NUCLEAR PLANTS OVER THE NEXT 5 YEARS-
ALL THE POWER IS DEFINITELY GOING TO BE NEEDED.
JACK AYLMER – STRAIGHT ARROW NEWS.
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