Data Centers & Solar Power: 100MW+ Deals Guide

The Impact of AI on Data Center Power Demand

The rapid adoption of artificial intelligence is driving substantial growth in the demand for data center resources. This surge in activity has proven beneficial for technology firms like Nvidia, but it's also creating unprecedented challenges and opportunities within the power generation sector.

Projected Growth in Power Consumption

According to recent analysis from JLL, the power requirements of the data center industry are anticipated to double by the year 2029. Consequently, both data center developers and the technology companies that rely on them are actively securing future power capacity.

The anticipated increase in demand is positively influencing several energy sources. Both nuclear power and natural gas are experiencing renewed interest, however, solar power has seen particularly significant gains in the short term.

The Rise of Solar Power

Despite the inherent challenge of intermittency – the dependence on sunlight for energy production – the advantages of solar power have spurred a wave of substantial investment. Companies are rapidly establishing long-term agreements to secure solar energy resources.

Compared to emerging technologies like advanced nuclear reactors, which are still awaiting widespread commercial deployment, solar power represents a well-established and reliable solution.

Furthermore, unlike the lengthy development timelines associated with new natural gas power plants, which can take years to become operational, a new solar farm typically reaches completion within approximately 18 months.

Importantly, solar energy currently stands as one of the most cost-effective options for expanding power generation capacity.

Recent Investment Trends

Since the beginning of 2025, technology companies and data center operators have participated in 12 separate solar energy agreements. Each of these deals contributes over 100 megawatts of additional capacity to the existing power grid.

These investments demonstrate a clear commitment to sustainable energy solutions as the demand for AI-driven computing continues to escalate.

January

The year began with Meta establishing a significant renewable energy agreement with Engie, a global electric utility, securing 200 megawatts of solar power. This procurement was specifically designated for a solar energy facility located in proximity to one of Meta's operational data centers within Texas.

Prior to this deal, Meta had already amassed a substantial renewable energy portfolio, exceeding 12 gigawatts in generating capabilities.

Bloomberg reported later in January on the Stargate AI initiative, a collaboration between OpenAI, Oracle, and SoftBank Group, noting that solar energy would contribute to its power supply. SB Energy, a component of SoftBank’s investment holdings, is anticipated to spearhead the development of solar projects integrated with large-scale battery storage systems.

Meta concluded January by finalizing another large-scale solar agreement, this time partnering with Zelestra, a Spanish renewable energy developer, for a capacity of 595 megawatts.

February: Renewable Energy Investments by Tech Giants

Meta maintained its commitment to sustainability throughout February, allocating funds to a substantial 505-megawatt solar initiative. This project is being developed in collaboration with Cypress Creek Renewables and is located in Coleman County, Texas, approximately 150 miles northwest of Austin.

Microsoft also significantly increased its renewable energy portfolio during February. The company, a consistent purchaser of renewable energy for its operational needs, secured an additional 389 megawatts of solar power through a contract with EDP Renewables North America.

This agreement encompasses three distinct solar farms: two situated in Illinois and one in Texas. These acquisitions are instrumental in Microsoft’s ongoing efforts to achieve its goal of 100% carbon-free electricity for its operations.

Amazon similarly expanded its renewable energy holdings with a large-scale hybrid project on the Iberian Peninsula. This project integrates wind, solar, and pumped-hydroelectric storage technologies.

The total capacity of this deal is 476 megawatts, with 212 megawatts specifically allocated to solar power generation.

International Solar Investments

Investments in solar energy weren't limited to the United States during February. Data center operators globally demonstrated a growing interest in solar resources.

In India, CtrlS completed the construction of a 125-megawatt solar facility, implemented in two phases. The initial phase concluded in June 2024, with the second phase finalized in early February.

Further south, in South America, Telecom Argentina entered into an agreement to procure electricity from a 130-megawatt solar farm. This farm is being developed by MSU Green Energy.

These investments highlight a continuing trend of tech companies prioritizing renewable energy sources to power their growing infrastructure.

March

Throughout March, Microsoft expanded its solar energy investments with the addition of three new projects situated in the Midwestern United States. These developments, undertaken in collaboration with AES, are located across Illinois, Michigan, and Missouri.

Collectively, these installations will contribute 475 megawatts of capacity to Microsoft’s growing energy portfolio, which already totals an impressive 34 gigawatts.

Cisco Systems also entered into a power purchase agreement, securing 100 megawatts of solar energy through a deal with X-Elio. X-Elio is a solar developer that is owned by Brookfield, a significant investor in renewable energy sources.

The agreement will see Cisco receiving power from two separate solar projects based in Texas.

Meta Platforms further increased its commitment to renewable energy in March, adding 200 megawatts of solar capacity via a partnership with RWE. This new solar farm is being constructed southeast of Austin, Texas.

Data4, an operator of data centers, finalized a 10-year power purchase agreement with Edison Energia in Italy. This deal will provide Data4 with energy from a 148-megawatt solar farm located northwest of Rome.

Growing Momentum for Solar Energy

The rapid integration of AI into a wide array of products and markets by technology firms is driving significant expansion in data center infrastructure. This expansion, in turn, necessitates increased power generation, positioning solar power as a particularly advantageous solution.

Currently, large-scale solar installations represent one of the most cost-effective methods for creating new power capacity, even excluding governmental incentives, surpassing all sources except onshore wind. Furthermore, its relatively swift deployment timeline and phased commissioning capabilities allow data centers to begin utilizing power before project completion.

These characteristics have collectively provided solar energy with a distinct short-term advantage, resulting in a surge of agreements with major technology corporations and data center construction companies. This upward trajectory is anticipated to persist.

The demand for renewable energy sources is increasing as companies strive to meet sustainability goals.

Benefits of Utility-Scale Solar

• Cost-Effectiveness: Solar is competitive with other energy sources, especially when considering long-term operational costs.
• Rapid Deployment: Solar projects can be brought online faster than many traditional power plants.
• Scalability: Data centers can begin using power as phases of a solar project are completed.

Big Tech companies are increasingly prioritizing renewable energy to power their operations. This is driven by both environmental concerns and the potential for cost savings.

The trend towards greater solar adoption is expected to continue as data center power demands grow and the cost of solar technology decreases.