At the CERAWeek energy conference in Houston on Wednesday, Bobby Hollis, Vice President of Energy at Microsoft, shared his insights on the significant potential for growth in U.S. wind and solar energy development, especially in powering the growing demand for data centers. According to Hollis, the Midwest wind corridor and the sunny southwest remain key areas with substantial untapped opportunities for renewable energy production.
The rapid expansion of data centers driven by Big Tech companies, fueled by AI and cloud technologies, has dramatically increased power consumption, raising concerns about the sustainability of relying on renewable energy sources. As these energy-intensive centers continue to proliferate, there are mounting questions about whether they will rely more on carbon-free renewable energy or switch to gas-fired power.
“We still think there is a very long road ahead that keeps renewables an important part of the mix in the places where that makes sense,” Hollis emphasized. Despite challenges, Microsoft remains committed to expanding its use of renewable energy to power its data centers. The company has pledged to become carbon negative by 2030 and is investing a staggering $80 billion this year alone in data center expansion. This massive investment will require vast amounts of electricity, which Microsoft plans to source sustainably, despite the intermittency of solar and wind power.
Since solar and wind are intermittent energy sources, only producing power when conditions are favorable, data centers, which require constant electricity, face significant challenges. To address this, natural gas, a reliable 24/7 power source, has become an increasingly attractive option, despite its associated carbon emissions. Hollis noted, “Let’s add more gas when it’s necessary. Before we ever get to that place, let’s make sure that we’ve added the renewables.”
The Midwest, with its consistent and strong winds, and the sunny southeastern U.S. are identified as regions with great potential for expanding renewable energy infrastructure to meet the needs of data centers. Microsoft’s global renewable power procurement already exceeds 30 gigawatts, underscoring its commitment to driving the transition to cleaner energy sources.