Meta’s Massive Solar Buy: 1 GW in a Single Week
▼ Summary
– Meta signed three solar power deals totaling nearly 1 gigawatt this week to support its AI ambitions.
– These agreements bring Meta’s total solar capacity purchases to over 3 gigawatts this year, as solar is cheap and quick to build for expanding data centers.
– The Texas deal involves 600 megawatts from a solar farm feeding into the local grid to offset Meta’s facility usage, while the Louisiana deals use environmental attribute certificates (EACs) to offset carbon-intensive power.
– EACs have been criticized for obscuring tech companies’ true carbon footprints, which have grown with increased AI electricity use.
– Experts argue that to effectively offset new AI energy use, companies should encourage building new renewable capacity rather than relying on EACs, which no longer provide strong incentives due to lower renewable costs.
Meta has made a significant move into renewable energy, securing close to one gigawatt of solar power through three separate agreements in just one week. This aggressive procurement strategy supports the company’s expanding artificial intelligence operations and its broader sustainability goals. With these additions, Meta’s total solar capacity acquisitions for the year now exceed three gigawatts, reinforcing solar energy’s role as a preferred power source for technology firms experiencing rapid data center growth.
Two of the newly announced contracts are located in Louisiana, where Meta will acquire environmental attributes tied to a combined 385 megawatts of solar electricity. Both installations are scheduled to become operational in 2027. Earlier in the week, the company also entered into a larger arrangement for 600 megawatts from a major solar farm near Lubbock, Texas, which is likewise expected to begin commercial operations in 2027.
While the Texas facility will not connect directly to Meta’s data centers, it will supply clean electricity to the local grid, effectively balancing out the power consumed by the company’s operations. In contrast, the Louisiana agreements involve purchasing environmental attribute certificates (EACs), which allow Meta to offset carbon emissions from conventional power sources used elsewhere.
These certificates, sometimes referred to as renewable energy credits, have drawn criticism from industry experts who argue they can obscure the true carbon footprint of tech companies. As artificial intelligence applications drive up electricity consumption, some analysts question whether EACs genuinely contribute to new renewable capacity or simply repackage existing green energy.
Originally introduced when renewable power was more expensive than fossil fuel generation, EACs enabled companies to pay a premium to support renewable projects and claim emissions reductions. This mechanism helped spur early investment in solar and wind infrastructure. However, the economics have shifted dramatically. Renewable energy now frequently undercuts the cost of both new and existing fossil fuel plants, reducing the incremental impact of certificate-based purchasing.
If technology companies aim to fully counterbalance the rising energy demands of AI, experts suggest they should focus on incentivizing the development of brand-new renewable power installations rather than relying primarily on certificate markets. Direct investment in additional capacity could deliver more meaningful and verifiable environmental benefits, ensuring that corporate energy strategies keep pace with both operational growth and climate commitments.
(Source: TechCrunch)
