Tech Giants Invest In Renewable Energy To Achieve Net-Zero

Tech Giants like Amazon and Google are investing in renewable energy projects, which demands more from companies to reach net-zero

Technology companies have been looking for ways into the energy market for some time. Companies are investing heavily in energy acquisitions to support their net-zero initiatives for technology development. Tech companies are investing in the sector in a ‘stampede’ like fashion. 

Tech Giants’ Energy Buy-In

The online retail giant, Amazon, has plans to move into the energy market. The company will kickstart its renewable energy acquisition with the purchase of 1.5GW of production capacity, which will be the result of 14 new solar and wind energy plants around the world. The venture will take place to eliminate the company’s emissions by 2025. Tech companies are buying up infrastructure for renewable energy generation at a remarkable pace and slowly providing more significant investments than any government subsidies that would otherwise be given.

The energy industry is receiving a lot of interest from a group of six corporations - Amazon, Alphabet Inc., Facebook Inc., Microsoft Corp., Total Energies, and AT&T Inc., four of which are the largest global tech companies. According to research by BloombergNEF, these global corporations account for 30% of the energy sector, acquired by large corporate buyers.

Michael Terrell, Director of Energy at Google, told the Wall Street Journal, “it’s almost like a stampede for clean energy.” The issue that arises from the purchase of renewable energy is that tech companies are under pressure to prove their practices are in line with net-zero standards. Microsoft is undergoing an analysis of renewable energy sources to determine the optimal times for energy production. “Just because you put a clean electron on the grid doesn’t necessarily mean you’re displacing a carbon-based electron,” says said Brian Janous, General Manager of Energy and Renewables at Microsoft.

Meanwhile, Amazon is the top clean energy investor resulting in projects across the US, Canada, Finland, and Spain, which will see 10GW of energy production. The Renewable Energy Business Alliance has recognised that Amazon’s new plants are scheduled to come online within the next three years, powering the company’s cloud services arm and Amazon Web Services (AWS). Nat Sahlstrom, Director of Energy at Amazon, explains how the company targets projects that would not be able to start with an investment from an external organisation. “If not for our investments in these projects, they would not have gone forward,” says Sahlstrom.

For more energy insights, check out the latest Energy Digital magazine.


Featured Articles

Data Centre Demand Putting Pressure on Energy Capabilities

Utilities in the US are predicting a tidal wave of demand for data centres thanks to the boom of AI, which, in turn, will dial up the need for electricity

Q&A with Hitachi Energy’s EVP & Head of North America

Anthony Allard, who heads up Hitachi Energy as Executive Vice President and Head of North America, shares why the grid is holding us back from clean energy

OMV Takes Strides in Energy Efficiency & Emissions Reduction

Austrian multinational integrated oil, gas & petrochemical company OMV continues its sustainability mission, and reports Scope 1 & 2 emissions are down 25%

Q&A with RAIN Alliance President and CEO Aileen Ryan

Technology & AI

Who is Greg Joiner, the new Head of Shell Energy?

Oil & Gas

Watershed Workshop at Sustainability LIVE: Net Zero