The rapid surge in artificial intelligence (AI) enthusiasm has prompted a significant expansion of data centre operations among tech companies, creating a robust demand for power. According to JLL, the energy sector anticipates a doubling in power consumption due to these new and enlarged data centres by 2029, bringing substantial growth opportunities for energy providers, notably in solar energy.
Despite some challenges, such as intermittency when sunlight is absent, the advantages of solar power have led to substantial contracts being signed swiftly across the industry. Solar power, as a mature technology, offers a faster setup time than advanced nuclear facilities, which are yet to be commercially deployed, and new natural gas power plants that require years for construction. The typical timeframe for establishing a new solar farm is approximately 18 months, making it an appealing option for tech companies striving for energy solutions.
Since the start of 2025, tech giants and data centre operators have initiated twelve solar agreements, each contributing over 100 megawatts of capacity to power grids. Meta has been particularly active, beginning January with a 200-megawatt deal with Engie to support a solar farm near a Texas data centre, adding to its renewable energy portfolio of over 12 gigawatts. The company further secured a 595-megawatt capacity agreement with Zelestra before finalising a 505-megawatt project with Cypress Creek Renewables later that month.
Microsoft has also made strides, purchasing 389 megawatts from EDP Renewables across three solar farms. Amazon’s recent involvement includes backing a hybrid energy project that encompasses wind, solar, and hydroelectric power.
Internationally, solar investments are being made outside the U.S. CtrlS has developed a 125-megawatt solar capacity in India, while Argentina’s Telecom has engaged in a ten-year agreement for a 130-megawatt solar farm.
As demand for power continues to grow with the AI boom, the trend of solar investment appears set to escalate. The efficiency and cost-effectiveness of utility-scale solar—which ranks among the least expensive new generating methods—coupled with the ability for phased deployment, allow tech companies to address urgent energy needs without extensive delays.
This combination of advantages positions solar power as a favourable choice for the tech sector and data centre expansions. As AI technologies integrate into various markets, the ongoing demand for energy will likely fuel an increase in solar-related agreements, maintaining the momentum in this market.
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