Microsoft signs renewable energy deal with Brookfield, 10.5 gigawatts capacity to likely cost $10 B

On Wednesday, tech giant Microsoft and Brookfield Asset Management of Canada announced plans to develop new solar and wind farms to bring over 10.5 gigawatts of new renewable energy capacity.

This deal signifies the importance of meeting clean energy commitments as well as the demands of cloud computing and AI. It will also enable Microsoft to access a supply of new renewable energy to meet the ever-increasing demand for cloud services at work and home.

Targeted markets

A Microsoft spokesperson stated that Brookfield aims to deliver new renewable energy capacity in the European and the U.S. markets by 2026 and 2030. Microsoft has agreed to help Brookfield reach its aim, of “having 100% of its electricity consumption, 100% of the time, matched by zero-carbon energy purchases by 2030.”

The agreement includes the possibility of expanding its reach to enhance renewable energy capacity also with the Asia-Pacific, India, and Latin America regions. It incentivizes Brookfield to create a huge portfolio of fresh renewable energy ventures in years to come.

Experts’ take

Experts say that this new capacity of 10.5 gigawatts can cost over $10 billion. Both the companies did not mention the financial terms of the agreement yet.

President of Brookfield and CEO of its secondary Brookfield Renewable Connor Teskey said in a statement, “As the global trend of digitalisation and the adoption of AI continues to drive growth in demand for electricity, we are thrilled to collaborate with Microsoft to support their customer demand with the build-out of over 10.5 gigawatts of renewable energy capacity.”