Google, Microsoft outline new renewable energy plans

Aim to shorten the timeline for bringing new datacentres online amid pressures on the grid

Google, in partnership with Intersect Power and TPG Rise Climate, has announced a new initiative to address the growing energy demands of AI and datacentre operations.

As part of the programme, large-scale solar energy projects will be developed, ensuring a reliable and sustainable power supply for Google's US datacentres.

Google believes that the current US electricity grid is insufficient to support the exponential growth of AI-powered services, and this initiative is a proactive step towards securing a sustainable energy future.

Google's collaboration with Intersect Power will involve building industrial parks with "gigawatts of datacentre capacity in the US, co-located with new clean energy plants to power them."

This "power-first" approach is expected to significantly shorten the timeline for bringing new datacentres online while enhancing grid reliability. The first phase of the initial co-located clean energy project is expected to begin operations by 2026, with completion expected by 2027.

Ruth Porat, Google's president, highlighted the potential risks of grid limitations to the country's economic growth, particularly in the context of AI advancements and the electrification of various sectors.

"This partnership was motivated by the reality that resources are necessary to capture AI's extraordinary potential to advance scientific breakthroughs and solve critical challenges in healthcare, education and beyond — and generate economic growth," Porat said.

By investing in renewable energy sources, Google aims to mitigate these challenges and reduce its carbon footprint.

While Google's overall carbon emissions increased in 2023, the company maintains (unconvincingly) that AI is not the primary driver of this trend. Nevertheless, it says it is committed to sustainability and is embarking on various initiatives to reduce its environmental impact.

Sheldon Kimber, CEO and Founder of Intersect Power, noted: "This partnership is an evolution of the way hyperscalers and power providers have previously worked together. We can and are developing innovative solutions to rapidly expand clean power capacity at scale while reducing the strain on the grid."

Microsoft’s renewables coalition

Google's investment in solar power is part of a broader industry trend, with many tech giants exploring innovative solutions to power their datacentres, including nuclear.

On Wednesday, Microsoft took another step towards its sustainability goals by anchoring a $9 billion renewable energy coalition.

The tech giant, along with Acadia Infrastructure Capital, has formed the Climate and Communities Investment Coalition (CCIC), aiming to build 5 gigawatts of renewable power capacity.

"The CCIC programme provides us opportunities to meet our goals through high-quality renewable energy procurement," said Danielle Decatur, director, environmental justice at Microsoft.

While Microsoft hasn't explicitly tied these renewable energy projects to specific datacentres, the generated renewable energy credits (RECs) will contribute to the company's overall sustainability efforts.

Brian O'Callaghan, vice president at Acadia, said the CCIC's mission is to accelerate corporate-led renewable energy financing while delivering tangible benefits to local communities. Among these benefits are affordable access to clean energy for low- and middle-income households, the creation of local job opportunities and support for contractors from diverse ownership backgrounds.

The initiative is backed by the Sustain Our Future Foundation, an organisation committed to advancing sustainable development in ways that maximise equitable community benefits and promote environmental justice.

"The CCIC represents a powerful and collaborative commitment to confronting a legacy of environmental injustices while advancing clean energy solutions," stated Yinka N. Bode-George, founder and CEO of Sustain Our Future Foundation.

"Our team will help deliver meaningful, lasting benefits to community stakeholders."

The CCIC's first deal, a collaboration with Matrix Renewables, has secured financing for a 210-megawatt solar project, backed by Microsoft.

In May, Microsoft struck a deal with Brookfield Asset Management, committing to back an estimated $10 billion in new renewable energy projects to generate 10.5 gigawatts of power.

Big tech companies have come under increasing pressure over the amount of energy used by their datacentres, particular with the advent of generative AI, with their facilities causing bottlenecks in local and national grids. Despite past promises, energy consumption and emissions from their datacentres are rising rather than falling.