2 minute read | May.02.2024
In a first-of-its-kind agreement, Microsoft and Brookfield Asset Management, together with Brookfield Renewable, have announced the largest single corporate power purchase agreement (PPA) ever signed.
The deal is almost eight times larger than any previous single corporate PPA. It advances Microsoft’s goal of having 100% of its electricity consumption, 100% of the time, matched by zero-carbon energy purchases by 2030.
As Bloomberg noted, it’s “the biggest corporate clean-energy purchase agreement ever announced, as the technology giant ramps up its investment in artificial intelligence.”
Orrick represented Microsoft.
The agreement paves the way for Brookfield to deliver over 10.5 GW of renewable power capacity to the U.S. and Europe between 2026 and 2030.
Adding that much energy – enough to power about 1.8 million homes – would cost more than $10 billion based on industry trends, Financial Times reported; the power will be added to grids from which data centers draw electricity.
The agreement would finance the construction of solar and wind farms and also involve new or impactful carbon free energy generation technologies.
It has the potential to increase in scope to deliver additional capacity in the U.S. and Europe and in parts of Asia, including India, and Latin America.
The transaction continues Microsoft’s leadership in decarbonization.
In addition to this transaction, in the past 10 months, Microsoft has signed one of the largest permanent CO2 removal deals, the world’s first fusion energy purchase agreement and a 12GW solar module agreement, making the company one of the largest renewable-energy purchasers in the world
“Microsoft wants to use our influence and purchasing power to create lasting positive impact for all electricity consumers,” said Adrian Anderson, General Manager of Renewables, Carbon Free Energy, and Carbon Dioxide Removal (CDR) in a press release.
Teresa Hill led the Orrick team advising Microsoft. The Orrick team also included Lana Le Hir, Monica Molina and Austin Himes.