Meta Data Centers: Return to Solar Power

Tech Companies Balance Nuclear Ambitions with Renewable Energy Investments

Despite increasing discussion surrounding advanced nuclear power, technology companies are consistently expanding their renewable energy capacity.

Recent Renewable Energy Deals by Meta

Meta has recently finalized an agreement with Zelestra, a Spanish renewable developer, for 595 megawatts of solar power in Texas. This deal follows a similar agreement with Engie just two weeks prior.

This represents a substantial investment for Meta, increasing its total renewable energy capacity under contract by almost 5%, bringing it to over 12 gigawatts.

AI Strategy and Infrastructure Investment

The announcements coincide with Mark Zuckerberg, CEO of Meta, emphasizing the company’s ambitious artificial intelligence (AI) strategy.

This strategy necessitates significant capital investments in the development of data centers.

Llama 4 and the Competitive AI Landscape

Meta is actively working to position its open-source Llama 4 model as a competitor to closed-source AI models from companies like OpenAI and Anthropic.

While DeepSeek has demonstrated efficient model development, its methods may not be directly applicable to cutting-edge models such as Llama 4.

Significant Capital Expenditure

Meta anticipates spending $60 billion this year on capital investments, with the majority allocated to data center infrastructure. Zuckerberg highlighted this as a key “strategic advantage” during a recent earnings call.

Exploring Nuclear Power for Future Needs

Similar to many other companies in the tech sector, Meta is evaluating nuclear reactors as a potential source of stable power for its future computing requirements.

The company is currently seeking proposals for 1 to 4 gigawatts of capacity, aiming for operation in the early 2030s. To put this in perspective, one gigawatt can power approximately 750,000 homes.

The Urgency of Expanding Data Center Power

However, Meta cannot postpone expanding its data center power supply until nuclear options are available.

Large-scale capital is being deployed to construct new data centers, which inherently demand substantial power resources.

Some experts predict that by 2027, half of all new AI data centers may face power limitations.

Timelines for Nuclear and Natural Gas

The construction of nuclear power plants requires several years, and the latest generation of advanced reactors are still undergoing commercial validation.

Natural gas power plants offer a slightly faster deployment timeline.

Renewables Offer the Fastest Deployment

Neither of these options can match the speed at which renewable energy sources can be implemented.

A solar farm can be operational in as little as 18 months, and its modular nature allows for power delivery even before the entire facility is completed.

Continued Growth in Renewable Energy Contracts

This rapid deployment capability has enabled wind, solar, and battery storage technologies to consistently secure new contracts from tech companies.

In addition to the recent deal with Zelestra, Meta announced the purchase of 200 megawatts of solar energy from Engie earlier this month, scheduled to come online later this year.

Furthermore, Microsoft is collaborating with Acadia Infrastructure Capital on a $9 billion renewable energy deployment, while Google is supporting a $20 billion renewable fund alongside Intersect Power and TPG Rise.