The rush to capitalize on the excitement round AI has led tech corporations to dramatically develop their knowledge middle footprints. That’s been excellent news for corporations like Nvidia, but it surely has additionally led to unprecedented progress within the energy trade.
New and expanded knowledge facilities are anticipated to double the sector’s energy demand by 2029, in accordance with JLL. As a outcome, builders and tech corporations have been working additional time to lock in capability. Nuclear and pure gasoline have gotten boosts from the forecasted demand, however few applied sciences have benefited within the close to time period like photo voltaic.
Though solar energy suffers from what specialists name intermittency — it gained’t produce if the solar isn’t shining — the upsides have been so vital that corporations have been inking massive offers at a speedy tempo.
Unlike superior nuclear reactors, which have but to be deployed at industrial scale, solar energy is confirmed expertise. And not like new pure gasoline energy vegetation, which take years to plan and assemble, the typical completion time for a brand new photo voltaic farm is about 18 months. Plus, it’s one of many lowest-cost sources of latest producing capability.
Since the beginning of 2025, tech corporations and knowledge middle operators have backed 12 photo voltaic offers, every including greater than 100 megawatts of capability to the grid.
January
Meta kicked off the yr with a 200-megawatt photo voltaic cope with multinational electrical utility Engie. The buy went towards a photo voltaic farm close to one of many firm’s present knowledge facilities in Texas. At the time of the deal, Meta already had over 12 gigawatts of producing capability in its renewable portfolio.
Later in January, the Stargate AI partnership between OpenAI, Oracle, and SoftBank Group was reported by Bloomberg to be powered, not less than partly, by photo voltaic. SB Energy, which is a part of SoftBank’s portfolio, is anticipated to develop photo voltaic installations backed by grid-scale batteries.
Meta closed out the month with one other huge photo voltaic deal, this one with Spanish renewable developer Zelestra. The contract was for 595 megawatts of capability.
February
Meta continued its streak in February, investing in a 505-megawatt photo voltaic mission with Cypress Creek Renewables, which is creating the huge set up in Coleman County, Texas — about 150 miles northwest of Austin.
Microsoft entered the fray in February, too. The firm has lengthy been a purchaser of renewable power to energy its operations, and added one other 389 megawatts of photo voltaic in a cope with EDP Renewables North America. The contract covers three completely different photo voltaic farms, two in Illinois and one in Texas. The purchases have helped Microsoft keep on prime of its pledge to energy its operations utilizing zero carbon energy.
Amazon additionally made a giant buy, backing a hybrid mission on the Iberian Peninsula that features wind, photo voltaic, and pumped-hydroelectric storage. The deal included 476 megawatts whole, of which 212 megawatts are photo voltaic.
Outside of the U.S., knowledge middle operators have additionally been investing in photo voltaic. In India, CtrlS constructed its personal 125-megawatt facility in two phases, the primary half of which was completed in June 2024 with the second accomplished in early February. In South America, Telecom Argentina agreed to purchase electrical energy from a 130-megawatt photo voltaic farm developed by MSU Green Energy.
March
Microsoft added one other three photo voltaic developments in March, once more specializing in the Midwest. The initiatives span Illinois, Michigan, and Missouri, they usually’re being developed by AES. Together, they are going to present Microsoft with 475 megawatts of capability, including to its appreciable 34-gigawatt portfolio.
Cisco bought within the recreation with a 100-megawatt cope with X-Elio, a photo voltaic developer owned by Brookfield, an asset supervisor that has guess massive on renewables. The energy buy agreements see Cisco shopping for capability from two completely different Texas photo voltaic initiatives.
Meta added one other 200 megawatts of photo voltaic to its portfolio in March in a cope with RWE. The photo voltaic farm shall be constructed simply southeast of Austin.
In Italy, knowledge middle operator Data4 signed a 10-year cope with utility Edison Energia to purchase energy from a 148-megawatt photo voltaic farm northwest of Rome.
More offers seemingly
As tech corporations race so as to add AI to seemingly each product and attainable market, knowledge facilities have been increasing to maintain tempo. That progress requires energy, and few applied sciences are as properly positioned as solar energy.
Utility-scale photo voltaic is already one of many most cost-effective types of new producing capability with out counting subsidies, undercutting the whole lot besides onshore wind. It’s additionally fast to deploy and might be commissioned in phases, permitting knowledge facilities to attract energy earlier than the complete mission is completed.
Those qualities have mixed to provide photo voltaic a near-term benefit, racking up offers with Big Tech corporations and knowledge middle builders. It’s a development that’s prone to proceed.
