3 ways Google is sourcing carbon-free power for data center growth
Google employs a team dedicated to finding and deploying enough “carbon-free” energy by 2030 to power its fast-expanding data center portfolio. Read More
Google has signed contracts to bring 275 megawatts of solar power and other “carbon-free” electricity online to support its Asia-Pacific data center portfolio.
The deals include a network of small-scale solar projects in densely populated Japan, a biomass power plant in Singapore, and new solar and wind capacity in Australia and India. Google previously announced a partnership with BlackRock to bring 1 gigawatt of solar to Taiwan’s grid, which still gets about 85 percent of its electricity from coal and natural gas plants.
Google employs an entire team dedicated to sourcing enough carbon-free energy available around the clock by 2030 to meet the demands of its fast-expanding data center portfolio. As of 2023, it was at 66 percent of its goal.
That’s a significant amount of power: Google’s data centers consumed 24 terrawatt-hours of electricity in 2023, or 7-10 percent of all data centers globally. Between 2010 and 2023, the cloud computing and artificial intelligence powerhouse signed 115 contracts to address that load, or about 14 gigawatts. Most of those contracts cover new solar and wind plants, but Google is also advancing emerging geothermal technology and next-generation nuclear power.
The Asia-Pacific region has been particularly tough to crack when negotiating contracts for carbon-free energy, said Giorgio Fortunato, head of clean energy and power for Google Asia-Pacific.
“Every area has its own energy landscape, geography and regulatory environment, meaning that electric decarbonization requires a tailored solution for each locale,” Fortunato said in an Oct. 21 blog.
Google uses three strategies to get over these obstacles, tactics that also shape contracts in other geographies.
Thinking small to get around land constraints
Locations for large solar projects in Japan are limited because of the island nation’s dense population, so Google found partners working on a network of smaller projects near its data centers. Those deals, with Clean Energy Connect and Shizen Energy, will add 60 megawatts to the grid. They’re part of Google’s planned $690 million infrastructure investment in Japan.
That same philosophy is being used in Singapore, where Google will buy power from a biomass power plant that generates energy using horticultural and wood waste. The project will produce six times the electricity available from a “comparably sized” solar installation, according to Google.
Getting involved in policies for clean energy
One factor impending the slow growth of clean energy in Asia-Pacific is government policy. Google is a founding member of the Asia Clean Energy Coalition, which also includes Amazon, Apple, Meta and Nike.
The group advocates for local policies that support the addition of renewable and low-carbon power alternatives and that also make it easier for corporations to buy that electricity. One example of a recent win is the introduction of a new transaction structure in Vietnam that will enable companies to buy renewable energy through long-term contracts.
Creating flexible contract structures
Google pioneered the creation of corporate power purchase agreements for solar and wind energy in 2009. Since that time, corporations have used PPAs to bring close to 200 gigawatts of clean power globally; those contracts added a record 46 gigawatts of capacity to the electricity grid in 2023 alone.
Now, the structure of those agreements is shifting. Google is using a new model called the “clean transition tariff” in the U.S. to help utilities bring new technologies onto the grid with less risk. The model works by covering the price difference between fossil fuels investments, such as a natural gas peaker plant, and a carbon-free alternative such as geothermal. Google is likewise experimenting with new partnerships in Australia and India.
Learn more about Google’s energy strategy during the “Planning for Power: Strategies to Manage Impending Electricity Load Growth” tutorial at VERGE 24 in San Jose, California.