In a landmark agreement, Microsoft and Brookfield, an asset management company, have announced a renewable energy deal valued at an estimated $10 billion. Under this partnership, Microsoft will invest in energy projects developed by Brookfield and its renewable energy subsidiary.
Brookfield Renewable Partners will deliver 10.5 gigawatts of new renewable energy capacity in the U.S. and Europe between 2026 and 2030, specifically to power Microsoft’s data centers. This substantial addition to the grid will support Microsoft’s growing demand for cloud services, with potential plans to expand into Asia-Pacific, India, and Latin America in the future.
While financial specifics were not disclosed, the Financial Times suggests that integrating this new capacity will exceed $10 billion, reflecting recent industry trends. According to Connor Teskey, CEO of Brookfield Renewable and President of Brookfield Asset Management, this agreement represents a significant step in delivering large-scale clean power solutions to corporate partners, accelerating the global energy transition.
This collaboration builds upon existing efforts between the two companies, which had already secured nearly one gigawatt of renewable capacity. Beyond traditional wind and solar energy, the partnership aims to explore innovative carbon-free energy technologies to achieve broader decarbonization goals.
Microsoft’s commitment aligns with its sustainability targets, aiming to match all electricity consumption with zero-carbon energy purchases by 2030. The U.S., hosting a third of the world’s data centers, has become a critical market for companies like Microsoft seeking to enhance their cloud infrastructure.
In recent months, Microsoft has expanded its global investments, including a new AI hub in London and substantial pledges to bolster its UK data center infrastructure. UK Prime Minister Rishi Sunak hailed Microsoft’s investment as pivotal for the future of AI development in the UK, highlighting the strategic importance of such initiatives in driving technological advancement and sustainability.
