The top four U.S. hyperscalers — Amazon, Google, Meta, and Microsoft — are increasing their clean energy use to balance their power-hungry operations with goals to reduce carbon emissions. Together, these companies have secured over 84 gigawatts (GW) of clean energy across 29 markets worldwide, according to S&P Global Commodity Insights. With the rising demand for cloud services and AI, these companies are also taking steps to ensure their energy comes from clean sources.

A Growing Clean Energy Footprint Across the U.S.

The clean energy capacity contracted by Amazon, Google, Meta, and Microsoft makes up more than 61% of all corporate clean energy in the U.S. technology sector. Over 64% of their clean energy is in the U.S., with much of it located in states that allow companies to buy renewable energy directly from producers.

Here are some key facts about their clean energy footprint in the U.S.:

• Their clean energy projects cover 34 states (up from 30 last year).
• More than 1 GW of clean energy is linked to hyperscaler projects in 15 states.
• 61% of their U.S. clean energy contracts are in deregulated states.

Texas is the leading state, hosting nearly 27% of the U.S. hyperscaler clean energy capacity. The state has:

• 23 active datacenters and 15 more planned by hyperscalers.
• 86 GW of clean energy (48% of its total energy mix).

Ohio ranks second, with 4.5 GW (9.7%), and Virginia is third, with 2.8 GW (6%). Although Virginia has a large number of data centers, it doesn’t have as much clean energy as Texas, limiting its ability to expand.

By choosing states like Texas, Ohio, and Virginia, these companies can take advantage of lower energy prices, available land, and renewable energy options. This helps them scale up while meeting their clean energy goals in a cost-effective way.

A Mix of Clean Energy Sources

Solar energy is the biggest part of the clean energy mix for the big tech companies:

• 63% of their U.S. clean energy capacity is solar.
• 21% is wind energy.
• 14.2% is nuclear energy (up from 0% in early 2024)

The increase in nuclear energy is a major shift, as these companies now use it to provide constant, carbon-free power. Solar and wind energy can’t always produce power when needed, so companies are looking for other ways to ensure they have a steady supply of clean energy.

In addition to traditional nuclear plants, hyperscalers are showing growing interest in small modular reactors (SMRs) as a future power source for data centers. SMRs offer flexible, reliable, and carbon-free energy that can be deployed closer to data hubs, reducing transmission losses and improving energy security.

Companies like Microsoft have already signaled interest in SMRs to meet long-term clean energy needs for their expanding infrastructure.

Key Nuclear Energy Deals Driving Change

In 2024, several major nuclear energy deals were signed, showing that nuclear power is making a comeback as a way to supply data centers with reliable, low-carbon energy.

Some important deals include:

• Amazon & Talen Energy (March 2024): Amazon bought a data center powered by the Susquehanna Nuclear plant in Pennsylvania for $650 million, securing up to 960 MW of nuclear energy.
• Microsoft & Constellation Energy (September 2024): Microsoft signed a 20-year agreement to restart a retired nuclear reactor. This deal shows that companies are willing to pay more for nuclear power because it is a reliable energy source.

These deals also include new ways to directly connect data centers to nearby nuclear plants, bypassing the grid and improving energy reliability.

Growing Energy Demand from AI and Cloud Computing

The demand for energy in U.S. hyperscale data centers could grow at a rate of 19% per year through 2029, reaching nearly 260 terawatt-hours (TWh), according to 451 Research. This growth is driven by AI, cloud computing, and digital services, which require more energy. As a result, the tech companies will need to keep buying more clean energy to meet their needs.

The rapid growth of AI, which requires huge amounts of computing power, is a big reason why energy demand is rising. In fact, AI already makes up 10% of global data center energy use, and this number could grow quickly.

As AI models become more complex, companies will need even more energy to run them, pushing hyperscalers to keep finding new clean energy solutions.

The Big Four’s Race to Net Zero

All four hyperscalers are still dedicated to their bold carbon-free energy goals, with their energy demand rising fast. Their bold targets represent a clear shift in the corporate world toward full sustainability.

• Amazon aims to power operations with 100% renewable energy by 2025. The company is already ahead of schedule, achieving 86% renewable energy usage globally in 2024.
• Google has set a target to reach 24/7 carbon-free energy by 2030. The company wants to match every kilowatt-hour of electricity it uses with renewable energy. This will happen in real-time, 24/7.
• Meta has achieved net-zero emissions for global operations. It targets net-zero emissions across its entire value chain by 2030. This shows its commitment to reducing both direct and indirect emissions.
• Microsoft plans to be carbon negative by 2030, which means removing more carbon from the atmosphere than it emits.

These ambitious targets have driven innovation in clean energy. Companies are finding new ways to source, store, and use renewable energy efficiently. Hyperscalers often invest in energy storage and grid upgrades, which helps keep their operations running on clean energy.

Why Clean Energy Is the New Digital Backbone

The growth of hyperscalers and their clean energy investments is changing the way U.S. corporate energy markets work. These companies are not only transforming their own operations but are also leading the way for the wider market to adopt renewable and nuclear energy.

The shift from renewable energy being a choice to becoming a necessity is pushing the energy and tech industries to find new, sustainable solutions. As AI and cloud computing continue to grow, so will the need for more energy. This means clean energy will play a bigger role in powering these operations.

The efforts of Amazon, Google, Meta, and Microsoft are paving the way for a future where clean, reliable energy is available to support the growing digital world.