Microsoft has expanded its renewable energy portfolio with a new 389-megawatt solar power purchase, strengthening its ability to meet growing power demands driven by artificial intelligence operations.
The latest acquisition involves three solar projects developed by EDP Renewables North America - two facilities in southern Illinois and one near Austin, Texas. The deal combines direct electricity supply for nearby Microsoft operations with renewable energy credits for broader power needs.
This solar expansion adds approximately 2% to Microsoft's existing renewable energy capacity, which currently stands at nearly 20 gigawatts according to the company's 2024 sustainability report.
The tech giant's choice of solar power aligns with its need for rapid energy deployment to support expanding cloud and AI infrastructure. Solar farms offer particular advantages in speed-to-market, with new installations capable of beginning operations in as little as 18 months, compared to several years for traditional gas power plants.
To address round-the-clock power requirements, developers are implementing hybrid systems that combine solar and wind with battery storage. These integrated solutions enable consistent power supply by storing excess energy during peak production periods for use when renewable generation decreases.
The renewable energy purchase supports Microsoft's environmental goals, including its pledge to become carbon negative by 2030. Beyond renewable energy, the company is investing in various carbon removal approaches, including direct air capture, enhanced rock weathering, and reforestation projects.
Recently, Microsoft strengthened its environmental commitment through a partnership with Chestnut Carbon, securing over 7 million tons of carbon credits - equivalent to roughly half of the company's 2023 emissions.