Solar Energy Keeping Tech Firms Growing

meta data center

In one important step toward becoming eco-friendly, Meta agreed to buy 200 megawatts of solar from global energy giant Engie. It would extend its already very robust renewable energy arsenal, at above 12 gigawatts already. It really shows just how the data center explosion of tech companies needs renewable energy for support.

With AI-driven exponential growth in the demand for data processing, companies are now expanding their data center capacities at a fast rate. The high growth puts a high load on electricity grids. Experts say half of the new AI servers might be starved of power by 2027. Companies like Meta are also looking to build bigger facilities while simultaneously developing cleaner ways to meet their needs.

Meta’s newest solar project sits next to one of its current data centers in Texas, proof that the company is devoted to integrating renewable energy sources into its facilities. This news follows an announcement in December 2024 that outlined a 2-gigawatt data center in Louisiana. That facility reportedly relies on natural gas. By combining renewable and traditional sources, the company would be able to ensure resiliency in its operations while taking steps toward greening up its operations.

Solar isn’t the only avenue tech companies are exploring; the industry has also been making headlines lately investing in nuclear energy. In late 2024, Google signed a deal with Kairos to deploy 500 megawatts of small modular nuclear reactors by 2030, while Amazon signed a 300-megawatt deal with X-Energy for deployment in the early 2030s. Meta also announced it would consider nuclear power, asking for proposals to develop between 1 and 4 gigawatts of generation capacity around that timeline. Nuclear projects have long development periods and are fraught with regulatory hurdles that make the swift deployment rates associated with renewables almost impossible.

For instance, Meta’s just-announced solar farm will be online by 2025, well ahead of most nuclear development timelines. Other tech giants similarly are aggressively building out their renewable energy footprints. Google has just signed a $20 billion renewable energy deal with Intersect Power and TPG Rise, while Microsoft signed a $9 billion agreement with Acadia Infrastructure Capital.

This brings into play a key advantage of rapid deployment-the rapid deployment of solar and wind power, as tech companies race against the dual challenges of energy demand and climate change. These investments not only help to lock in energy supply for AI and other technologies but also signal the leading role of the industry in sustainability.

By powering their innovations responsibly, technology companies are setting the good example of resorting to renewable energy. Meta’s newest solar expansion is simply part of that bigger trend: renewables aren’t just part of the energy mix but are a cornerstone of the tech-driven future.

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