How Big Tech and Data Centers Are Solving Their Growing Energy Appetite With Renewables

Acceswire
2025.10.06 13:35
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Big Tech and data centers are increasingly turning to renewable energy to meet their growing electricity demands, driven by the rise of cloud computing and AI. Electricity use in US data centers has surged, with projections indicating a potential 20-40% increase in energy consumption by 2028 due to AI workloads. Companies like Google, Digital Realty, and Equinix are actively pursuing renewable energy strategies to meet corporate carbon reduction goals, with aims for 100% renewable energy coverage.

by Sarah Adams of Vert Asset Management

NORTHAMPTON, MA, NY / ACCESS Newswire / October 6, 2025 / Artificial intelligence (AI) may be software, but it is built from hardware: steel, copper, concrete, and energy. Every search query, AI-generated image or digital transaction routes through a data center, the brick-and-mortar to the cloud. These facilities, ranging from modest colocation sites to sprawling hyperscale campuses, run 24/7 to store and process the data behind cloud computing, AI, streaming and more.

The companies that own and operate this infrastructure fall into two groups: hyperscale cloud providers like Amazon Web Services (AWS), Google and Microsoft, and the real estate owners such as real estate investment trusts (REITs) like Digital Realty and Equinix. Hyperscalers are no longer just tenants, and data center REITs are not just landlords. Both the tenant and the landlord are now active energy market makers who are reshaping how power is sourced, scheduled and delivered.

Grappling with increased energy demand

Electricity demand from US data centers is rising at a pace not seen in decades. According to Lawrence Berkeley National Laboratory, data center electricity use grew 7% annually between 2014-2018, then more than doubled to 18% annually from 2018-2023, largely driven by cloud expansion and AI-optimized servers. It is estimated that by 2028, AI workloads alone could increase total data center energy use by 20-40% above baseline forecasts.

Hyperscalers and data center REITs include renewables in their procurement strategies for a few reasons. For one, corporate carbon reduction targets are driving procurement at scale. Google has a 24/7 clean power goal and both Digital Realty and Equinix have stated they are looking for 100% renewable energy coverage.

Read the insightful article from Sarah Adams of Vert Asset Mgmt here- https://greenmoney.com/from-energy-hogs-to-rewiring-the-grid-how-big-tech-and-data-centers-are-solving-the-clouds-growing-energy-appetite-with-renewables/

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