Google signs energy deal with Energix Renewables

Energix Renewable has entered into a long-term partnership with Alphabet’s Google to supply electricity and Renewable Energy Credits (RECs) generated from its solar project to the tech giant. Energix will initially supply 1.5 gigawatt-peak of solar project development till 2030, with a possibility of further extension.

Google will be offering Energix tax equity. As a part of the US government’s Inflation Reduction Act, corporate entities are allowed to acquire credits for supporting the development of clean energy projects like solar and wind facilities. The move also ties into Google’s long-term vision of being carbon neutral by 2030.

Why is it important?

AI’s accelerated development pushes power demand to sustain highly energy-intensive data centres. This increase in electricity needs is poised to drive up energy demand on an exceptional scale, and given the huge strides in AI development, it’s likely that computing speed will ramp up faster than improvements in electricity efficiency. Against such a backdrop, this move by Google reveals how big tech players are ramping up their efforts to ensure a seamless electricity supply by entering agreements with energy providers.