Microsoft invests over $10 billion in renewable energy to power data centers and artificial intelligence

Microsoft has signed an agreement to invest more than $10 billion in the development of renewable energy capacity to meet the growing demand for artificial intelligence and data centers.

Under the agreement, Brookfield Asset Management will supply 10.5 gigawatts of renewable energy to Microsoft between 2026 and 2030 in the United States and Europe. The companies characterized the agreement as the largest power purchase agreement signed between two corporate partners.

The 10.5 gigawatts of renewable energy capacity is three times the 3.5 gigawatts of electricity consumed by data centers in Northern Virginia, the largest data center market in the world.

The scope of the deal could expand to include additional power capacity in the US and Europe, as well as in Asia, Latin America and India. The deal will focus on wind, solar and new carbon-free technologies.

Microsoft has pledged that by 2030, 100% of its electricity will be generated by purchasing energy with zero carbon dioxide emissions.