Energy company, AES Corporation, has announced a 20-year agreement with Microsoft to provide renewable energy to its data centres in California. The agreement expands upon prior renewable energy agreements between the two companies, with AES supporting Microsoft in the pursuit of its goal of utilising 100 per cent of its electricity consumption, 100 per cent of the time, matched by zero-carbon energy purchases, by 2030.
Microsoft, one of the world’s largest purchasers of renewable energy, will use this highly customised agreement to partially match their load at their California-based data centres. AES will source the energy from a portfolio of 110 MW AC solar and 55 MW, 4-hour storage projects in the California Independent System Operator (CAISO) region.
“Microsoft continues to be a leader in the clean energy transition,” said Andrés Gluski, AES President and CEO. “Working in tandem with Microsoft, we co-created a scalable 24/7 carbon-free solution to power its data centres in Virginia, and we are now proud to move forward on another innovative renewable energy supply structure in California.”
“AES’ presence and critical capabilities in California will support our transition to 100 per cent renewable energy by 2025 and enable us to move forward in having 100 per cent of our electricity matched by zero-carbon resources all the time in the state,” said Brian Janous, General Manager of Energy & Renewables at Microsoft. “We have looked to AES as a partner in PJM and now California based on its ability to create innovative commercial structures that meet our needs.”
Through collaboration with its customers to help meet their unique energy commitments and outcomes, AES signed nearly 5 GW of new Power Purchase Agreements (PPAs) globally in 2021 and was ranked by BNEF as the top developer selling clean energy to corporations through PPAs.
