Microsoft adds 475 MW solar power for Midwest data centers

Microsoft is boosting its renewable energy strategy by adding 475 megawatts of solar power to support its data centers. The company has struck a deal with energy provider AES for three solar projects located in Illinois, Michigan, and Missouri. This increase in solar energy reflects Microsoft’s urgent need for power as its data center operations expand. Solar energy is quick to install and cost-effective, making it an ideal option for tech companies requiring immediate electricity. In recent months, Microsoft has been actively pursuing solar energy. In February, it secured 389 megawatts from additional solar projects in Illinois and Texas. Last year, Microsoft also became a key player in a $9 billion renewable power coalition led by Acadia. While some tech firms are exploring nuclear energy, the advantages of renewables have led to a steady flow of solar agreements. Although solar power may not always provide consistent energy like nuclear or natural gas, developers are increasingly integrating battery storage to ensure reliable electricity supply. This hybrid approach is pricier than standalone solar or wind energy, but costs are dropping for both solar and battery technology. As a result, hybrid power plants are beginning to compete with new natural gas plants in terms of pricing. Demand for computing power is growing rapidly, and experts warn that many new AI servers could lack sufficient power by 2027. Most new natural gas and nuclear plants will not be ready in time to meet this demand, but utility-scale solar projects can start generating power in about 18 months. This swift setup has led to significant deals, such as Microsoft's agreement with Brookfield Asset Management for 10.5 gigawatts of renewable energy in the U.S. and Europe, set to be delivered by 2030.