Record-breaking collaboration: Brookfield and Microsoft to Deliver over 10.5 gigawatts of renewable energy

 

Record-breaking collaboration: Brookfield and Microsoft to Deliver over 10.5 gigawatts of renewable energy

May 1 (Reuters) - Canada's Brookfield Asset Management (BAM.TO) and technology giant Microsoft (MSFT.O) are partnering to develop new wind and solar farms, with the goal of adding more than 10.5 gigawatts of fresh renewable energy capacity. The plan is for Brookfield to deliver this capacity between 2026 and 2030 in the U.S. and Europe, as confirmed by a Microsoft spokesperson in a statement to Reuters.

The Financial Times initially reported on this collaboration, noting that the 10.5 gigawatts of new capacity is projected to cost over $10 billion, aligning with current industry standards. However, the financial terms of the agreement have not been disclosed by either Brookfield or Microsoft. This deal underscores the importance of meeting clean energy targets while addressing the rising energy demands of cloud computing and artificial intelligence.

This partnership offers Brookfield a pathway to provide more than 10.5 gigawatts of new renewable energy capacity from 2026 to 2030 in the U.S. and Europe, as well as expanding its capabilities to offer additional renewable energy capacity in the U.S. and Europe, and extending to Asia-Pacific, India, and Latin America. The agreement serves as an incentive for Brookfield to develop a significant portfolio of new renewable energy projects in the near future.

The first global framework agreement of its kind is set to accelerate the growth of renewable energy capacity to support Microsoft's sustainability goals. The agreement between Brookfield and Microsoft is driven by their shared objectives to decarbonize global energy sources and reduce carbon emissions. With almost one gigawatt of renewable capacity already secured outside of the agreement, this partnership reinforces the current cooperation and extends it into the future.

According to The Financial Times, Microsoft has committed to investing around $10 billion in renewable electricity projects to be developed by Brookfield Asset Management.

The cloud company's "global framework agreement" represents a commitment to bringing 10.5 gigawatts of generating capacity online.

As per the FT, this agreement will finance the construction of large new wind and solar farms, expected to be established between 2026 and 2030, starting in the US and Europe.

Brookfield informed the Financial Times that the agreement is roughly eight times larger than the previous largest corporate renewable electricity purchase agreement, involving the mining company Rio Tinto and an Australian solar farm.

"Microsoft aims to leverage our influence and purchasing power to create lasting positive impacts for all electricity users," said Adrian Anderson, Microsoft's renewables general manager, in an interview with the publication.