Big Tech's AI Investments and RE100

While subsidies have been a driving force on the supply side of renewable energy investment, the rapid growth of AI-related investments is expected to play a similar role from the demand side. This issue will further exacerbate the shortage of power infrastructure, but at least for now, it will inevitably lead to positive trends in expanding renewable energy investment. This is because major tech companies are planning to source their power primarily from renewable sources under the RE100 campaign. 

Many big tech companies, including Apple, Google, and Microsoft, are planning to meet their growing power demand with renewable energy. As this is a voluntary demand independent of policy, it is unlikely to change direction, even if it slows down slightly due to changes in the US political landscape.

Microsoft has invested $10 billion in Brookfield Renewable's renewable energy business, with plans to receive 10.5 GW of renewable energy from 2026 to 2030. The company also aims to achieve 100% renewable energy for its self-operated data centers by 2025, under its "Datacenter Community Pledge." By 2030, they plan to achieve "water positive" and "zero waste" objectives.

Google announced in 2021 its goal to achieve carbon neutrality by 2030 across all its operations and value chain. It is also pursuing 24/7 Carbon Free Energy (CFE) and currently maintains an average achievement rate of 64%. Since first achieving RE100 in 2017, Google has been purchasing more renewable energy than its annual power consumption, maintaining its commitment for seven years. The company has implemented a "Google Renewable Energy Addendum" that requires its value chain suppliers to use 100% renewable energy by 2029, based on their raw material purchasing expenditure.

Google is also operating geothermal projects that convert heat into energy to power its data centers, and has partnered with startup "Fermion" in this area.

Apple has invested in various renewable energy projects through the funds raised from issuing green bonds three times from 2016 to 2019, totaling $4.6 billion. After acquiring solar energy company SolarCity in 2016, Tesla is now planning to build a "Powerwall" production facility in India, an excess power storage device. 

Key Takeaways:

• Big tech companies are driving increased investment in renewable energy: Driven by the RE100 campaign, these companies are actively seeking to power their operations with renewable sources, creating a strong demand for clean energy.
• This trend is likely to continue despite political shifts: Big tech's commitment to renewable energy is largely independent of government policies, making it a sustainable force in the market.
• Companies are taking diverse approaches: Investments range from direct partnerships with renewable energy companies to building their own facilities, and even investing in storage technologies like Tesla's Powerwall.
• Beyond electricity, the goal is broader sustainability: Tech giants are also pursuing objectives like water positivity and zero waste, demonstrating a commitment to a more holistic approach to environmental responsibility.