Microsoft has agreed to purchase 100 megawatts of solar power from Shizen Energy, a Japanese company, marking the latest in a series of renewable energy agreements aimed at supporting the tech giant’s increasing demand for computing resources.
Announced by both firms late last week, the contract involves four separate solar projects—one currently operational and three still being built. The agreement secures the energy output from these facilities for a period of 20 years.
Microsoft, headquartered in Seattle, already runs two data centers in Japan. The company’s computing infrastructure in the country is set to grow, with plans to invest $2.9 billion over the coming year.
In recent years, solar energy has become the preferred choice for technology firms and data center operators because it can be deployed rapidly and at a low cost. Solar ranks among the most affordable new energy sources, with most installations finished within a year and a half. Additionally, users can access electricity from the project even before it is fully completed.
Microsoft has significantly increased its solar purchases lately. Since the start of this year, it has signed contracts for over 1 gigawatt of solar power.