Microsoft to invest more than $10 billion in renewable energy to power data centers

Technology giant Microsoft has signed an agreement with Brookfield Asset Management to invest more than $10 billion to develop renewable energy capacity to meet the growing demand for artificial intelligence and data centers, the two companies announced on Wednesday.

According to CNBC, Brookfield will deliver 10.5 gigawatts of renewable energy to Microsoft between 2026 and 2030 in the United States and Europe under the agreement. The two companies described the deal as the largest single electricity purchase agreement signed between two companies.

The 10.5 gigawatts of renewable energy capacity is three times larger than the 3.5 gigawatts of electricity consumed by data centers in Northern Virginia, the world’s largest data center market.

A Brookfield spokesman said the deal would result in more than $10 billion in investment in renewable energy.

According to the two companies’ statement, the scope of the deal may expand to include additional capacity in the United States and Europe, as well as Asia, Latin America, and India. The agreement will focus on wind, solar and new carbon-free technologies.

To help mitigate the burden of climate change, Microsoft has pledged to match 100% of its electricity needs with carbon-free energy purchases by 2030.