Microsoft may shelve 2030 clean energy target as AI lifts power use, Bloomberg News reports


FILE PHOTO: A view shows a Microsoft logo at Microsoft offices in Issy-les-Moulineaux near Paris, France, January 9, 2025. REUTERS/Gonzalo Fuentes/File Photo

May 6 (Reuters) - Microsoft is ⁠considering delaying or abandoning its 2030 goal of ⁠matching its entire hourly electricity use with renewable ‌energy purchases, Bloomberg News reported on Wednesday, citing people familiar with the matter.

The expensive and energy-intensive push for data centers is reshaping the ​feasibility of Microsoft's climate commitments that were ⁠made before the AI ⁠era and rank among the industry's most ambitious targets, the ⁠report ‌said.

The discussions were ongoing and no final decision has been made, Bloomberg News added.

Microsoft did not ⁠immediately respond to a Reuters request for ​comment.

Like rivals Amazon ‌and Alphabet, the Windows maker is spending hundreds of ⁠billions of ​dollars to build out artificial intelligence infrastructure needed to power services such as its Copilot assistant and Azure cloud service.

Some ⁠of the new data centers tech ​companies are developing are expected to have multiple gigawatts of capacity. A single gigawatt is enough to roughly power 750,000 ⁠U.S. homes.

The rush to power those data centers has sparked a flurry of deals, including those for nuclear energy. It has also boosted demand for natural gas, which some ​industry executives have said is faster ⁠and easier to deploy than renewables.

Microsoft in 2024 agreed a ​power deal with Constellation Energy to ‌help resurrect a unit of ​the Three Mile Island nuclear plant in Pennsylvania.

(Reporting by Aditya Soni in Bengaluru; Editing by Leroy Leo)

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