Microsoft (NASDAQ: MSFT) has signed a pioneering global agreement to accelerate the expansion of renewable energy capacity. The five-year agreement will contribute to the development of more than 10.5 gigawatts (GW) of new renewable energy capacity. This figure is eight times greater than the largest energy purchase contract ever signed.
An overloaded agreement
The Global Renewable Energy Framework Agreement provides a visible path for Brookfield to build and deliver more than 10.5 GW of new renewable energy capacity in the US and Europe between 2026 and 2030. This will contribute to Microsoft’s goal of achieving the 100% of its energy purchases without carbon emissions by 2030. In addition, it significantly improves the relationship between both companies. Microsoft currently has renewable energy purchase agreements with Brookfield covering nearly 1 GW of renewable energy.
**The agreement significantly expands its long-standing relationship with Microsoft and will support more than $10 billion of future developments, significantly enhancing and expanding Brookfield Renewable’s long-term growth prospects**.
Access to new renewable energy capacity
The deal will provide Microsoft with access to a reserve of new renewable energy capacity to meet growing demand for its cloud services. In addition to wind and solar, the agreement will focus on new zero-carbon energy generation technologies. The tech giant needs more electricity for its energy-intensive data centers to take advantage of growing digitalization and the adoption of artificial intelligence (AI). These types of applications require a lot of computing power, which in turn requires a lot of electricity.
**This agreement will significantly expand Brookfield Renewable’s long-term growth prospects and improve Microsoft’s long-term growth prospects**.
Potential global expansion
Although the agreement initially focuses on building capacity in the US and Europe, Microsoft may expand the reach to Asia-Pacific, India and Latin America. The agreement incentivizes Brookfield to build a broad portfolio of renewable energy projects.
**This pioneering agreement will contribute to Microsoft’s goal of achieving 100% of its energy purchases without carbon emissions by 2030 and will support more than $10 billion of future developments**.
