Microsoft (MS) is investing approximately $10 billion (about 13.89 trillion KRW) in renewable energy projects developed by Brookfield Asset Management, a global alternative asset investment firm. This move aims to secure the massive power demand required for cloud computing and artificial intelligence (AI) development.
On the 1st (local time), MS announced that it had signed a 'global framework agreement' with Brookfield. The core of the agreement is that Brookfield will supply 10.5 gigawatts of renewable energy to MS from 2026 to 2030. This is the largest scale ever in the industry and is enough to supply power to approximately 1.8 million households.
Brookfield explained that the scale of this contract is about eight times larger than the previous largest renewable energy purchase agreement, which was signed between the mining company Rio Tinto and an Australian solar power plant. They also emphasized that investments exceeding $10 billion will be made for this purpose. BloombergNEF evaluated, "Assuming all developments are U.S. solar power plants, the construction cost is $11.5 billion," and added, "It is by far the largest corporate clean power purchase agreement."
MS's announcement comes amid growing concerns over data center and AI power demand due to the generative AI boom. The International Energy Agency (IEA) projected that by 2026, data centers worldwide could consume more than 100 terawatt-hours of electricity. This is more than double the 2022 level and comparable to Japan's total electricity consumption. Wells Fargo Research also recently forecasted that total U.S. power consumption will surge by 20% by 2030.
Amid this, technology companies worried about power shortages in the AI competition are rushing to expand investments related to energy. Moreover, MS has announced a goal to go beyond so-called 'net zero' and achieve 'carbon negative' status by making its annual net carbon emissions negative.
Bloomberg News reported, "This is due to the rapid increase in data center and AI power demand," and added, "Technology companies are expanding the share of clean energy not only to meet overall energy demand growth but also to achieve their own climate goals." CNBC also mentioned, "The emergence of AI, combined with the expansion of semiconductor and battery manufacturing and the transition to electric vehicles in the U.S., has led to a surge in power demand," and stated, "This agreement will focus on wind, solar, and new zero-carbon technologies." MS also signed a power supply agreement with fusion startup Helion Energy in May last year.
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