Sun-Powered Surge: Why Data Centers are Turning to Solar Energy
As the global rush to harness artificial intelligence (AI) accelerates, tech giants are rapidly expanding their data center capacities. This surge has triggered unprecedented demand in the power sector, setting solar energy at the forefront of this growth.
Data centers, crucial for supporting AI-driven technologies, are projected to double their power demands by 2029. According to real estate and investment management company JLL, this exponential growth has sparked a major push by tech firms and developers to secure reliable energy sources. Amid various power options like nuclear and natural gas, solar energy has emerged as a clear frontrunner due to its affordability, quick deployment, and proven reliability.
Despite solar’s challenge of intermittency—production ceases without sunlight—the benefits clearly outweigh this drawback. Solar farms offer some of the lowest costs for new power generation and can be fully operational within an average of 18 months. This flexibility contrasts sharply with the longer timelines needed to commission nuclear reactors or build natural gas facilities.
Since early 2025, large-scale solar deals exceeding 100 megawatts each have proliferated among major tech players:
January’s Solar Wave Meta spearheaded the year, sealing a 200-megawatt solar agreement with utility giant Engie near its Texas data center, bolstering Meta’s renewable capacity beyond 12 gigawatts. The month ended with Meta’s additional agreement for a massive 595-megawatt solar installation in collaboration with Spanish developer Zelestra.
Simultaneously, the Stargate AI consortium—comprising OpenAI, Oracle, and SoftBank Group—announced solar-backed energy solutions developed by SoftBank’s SB Energy.
February’s Momentum Meta expanded further, investing in a sizable 505-megawatt solar project developed by Cypress Creek Renewables in Texas. Microsoft joined the push with a significant 389-megawatt agreement spread across three solar farms operated by EDP Renewables North America, enhancing its commitment to zero-carbon operations.
Amazon also made a significant stride, supporting a 476-megawatt hybrid renewable project in the Iberian Peninsula, with 212 megawatts dedicated to solar power. Internationally, India’s CtrlS and South America’s Telecom Argentina invested in solar projects of 125 megawatts and 130 megawatts, respectively.
March’s Expansion Microsoft maintained its solar strategy with an additional 475 megawatts from AES across Illinois, Michigan, and Missouri. Cisco entered the solar market, securing 100 megawatts from Texas-based solar projects managed by X-Elio.
Meta further solidified its solar ambitions with another 200-megawatt deal with RWE near Austin, Texas. Meanwhile, European firm Data4 agreed to purchase electricity from a 148-megawatt Italian solar facility operated by Edison Energia.
A Bright Future for Solar As the AI boom shows no signs of slowing, neither does the solar industry’s momentum. The scalability, cost-effectiveness, and rapid deployment capabilities of solar energy uniquely position it to meet the soaring power demands of the burgeoning data center sector. With tech giants consistently betting big on solar, the trend towards sun-powered data centers appears destined to grow stronger, reshaping the energy landscape for years to come.
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