Microsoft is continuing its rapid investment in clean energy by purchasing 100 megawatts (MW) of solar capacity from Japanese developer Shizen Energy. This is the latest in a series of renewable energy deals designed to meet the growing computing demands of the Seattle-based tech giant.
The 20-year agreement, announced late last week, covers the energy output from four different solar developments in Japan. One of the solar farms is already operational, with the remaining three currently under construction.
Powering Japanese Data Centers
This investment directly supports Microsoft’s operations in Japan, where it currently runs two data centers. The company is set to significantly expand its compute capacity in the country as part of a planned $2.9 billion investment over the next year.
Solar power has become a preferred energy source for tech companies and data center operators globally due to its practicality and low cost:
- Cost-Effective: Solar is consistently ranked among the cheapest forms of new energy-generating capacity.
- Speed: Projects are typically completed quickly, often within 18 months, allowing users to start drawing power even before the entire development is finished.
Microsoft has been an exceptionally large buyer of solar power in recent months, contracting more than 1 gigawatt (GW) of solar capacity since the beginning of the year alone.