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United States–based software giant Microsoft has signed a USD 10 billion agreement that will give it access to over 10.5 GW of new renewable energy capacity, to be developed by Brookfield Asset Management and its renewable energy subsidiary Brookfield Renewable Partners. The deal is almost eight times as big as the largest single corporate power purchase agreement (PPA) ever signed, Brookfield said.
The five-year framework agreement with Microsoft will help Brookfield build the 10.5 GW of capacity between 2026 and 2030, while allowing the software giant to support the growing demand for artificial intelligence (AI) and cloud services with electricity produced from renewable energy sources.
The deal will help Microsoft to decarbonize operations amid growing demand for AI and cloud services
“As the global trend of digitalization and the adoption of AI continues to drive growth in demand for electricity, we are thrilled to collaborate with Microsoft to support their customer demand,” Brookfield said in a press release.
Microsoft has pledged to have 100% of its electricity consumption covered by zero-carbon energy purchases by 2030.
The new capacities will be built in the US and Europe
“The agreement will not only focus on wind and solar, but also new or impactful carbon free energy generation technologies,” said Brookfield. The new capacities will be developed in the US and Europe, but the deal includes the potential to increase its scope with additional capacity within the US and Europe, as well as in the Asia-Pacific region, India, and Latin America, according to the press release.
Brookfield Asset Management Ltd. has over USD 900 billion of assets under management. Brookfield Renewable Partners is its renewable energy company, with almost 33 GW of hydropower, wind, solar, and distributed energy and storage facilities in North America, South America, Europe, and Asia.
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