Big Tech Companies Ramp Up Clean Energy Use to Power AI and Cloud Expansion
The leading US hyperscalers, Amazon, Google, Meta, and Microsoft, are accelerating their efforts to incorporate clean energy into their operations, aligning their energy needs with their carbon emission reduction goals according to a report by Carbon Credits.
Together, they have secured over 84 gigawatts (GW) of clean energy across 29 global markets, in response to the increasing energy demands driven by cloud services and artificial intelligence (AI).
Expanding Clean Energy Footprint in the US
The clean energy projects of Amazon, Google, Meta, and Microsoft account for more than 61% of all corporate clean energy in the US technology sector, with 64% of their energy sourced from the US. These projects span across 34 states, including Texas, Ohio, and Virginia, with Texas hosting nearly 27% of the clean energy capacity.
The strategic choice of these states allows the companies to leverage low energy prices, abundant land, and renewable energy options, which helps them scale operations while meeting sustainability targets.
A Shift Towards Diverse Clean Energy Sources
According to Carbon Credits, solar energy remains the largest source of clean energy for these tech giants, constituting 63% of their US clean energy capacity. Wind energy makes up 21%, while nuclear energy, which previously played no role in their energy mix, now accounts for 14.2%. This shift towards nuclear energy reflects the companies' need for consistent, carbon-free power, as solar and wind energy alone cannot always meet their demand.
To meet long-term energy needs, companies like Microsoft are exploring Small Modular Reactors (SMRs), which offer reliable, flexible, and carbon-free energy. SMRs can be deployed closer to data centers, improving energy security and reducing transmission losses.
Key Nuclear Energy Deals Shaping the Future
In 2024, significant nuclear energy deals were signed, signaling a shift towards nuclear power for data centers. Amazon, for instance, secured a $650 million deal for a data center powered by the Susquehanna Nuclear plant in Pennsylvania, while Microsoft signed a 20-year agreement to restart a retired nuclear reactor with Constellation Energy.
As AI models become more complex, the demand for energy in US hyperscale data centers is projected to grow by 19% annually through 2029. AI already accounts for 10% of global data center energy consumption, and this number is expected to rise as the technology expands.
Also read: Brazil's Clean Energy Edge in the AI Race
All four hyperscalers have committed to ambitious clean energy goals. Amazon aims for 100% renewable energy by 2025, Google is working towards 24/7 carbon-free energy by 2030, Meta has reached net-zero emissions, and Microsoft plans to be carbon negative by 2030. These goals are driving innovation in energy sourcing, storage, and efficiency.
