The rapid expansion of AI, driven by hyperscalers such as Amazon, Google, Meta and Microsoft, is leading to unprecedented demand for renewable energy, particularly solar and wind power, a new report by S&P Global has suggested.
As of February 2026, Amazon, Google, Meta and Microsoft had contracted around 135 GW of clean energy capacity, up nearly fourfold in the past three years, S&P Global said, with the AI revolution acting as an accelerant to renewable energy adoption.
Energy autonomy
While this is positive from a sustainability perspective, the report suggests that the primary motivation for embracing renewable energy is driven by more than environmental factors – it’s about reliability, resilience and energy autonomy.
‘Incorporating renewable energy can be strategically sensible for Big Tech, especially when sourced directly from power plants, including via on-site generation,’ the report notes. ‘This helps hedge power consumption against the volatility of international markets, which geopolitical tensions amplify. It reduces exposure to fossil fuel inflation, decouples electricity procurement from foreign energy hubs and provides insulation against transport disruptions and geopolitical pressures.’
Potential hurdles
At the same time, challenges remain, with the intermittent nature of solar and wind – a factor that is being addressed by emerging battery technology – leading data centre operators to continue to rely on fossil fuels, and in some cases nuclear energy, as a backup. Last year, for example, saw a temporary resurgence in gas and coal usage, as firms sought to address immediate energy demands.
Geopolitical and supply chain challenges present another potential hurdle. Much of the technology behind renewable energy is produced in countries like China – home to nearly 78% of global battery cell manufacturing capacity – which creates potential supply chain vulnerabilities.
The Trump administration’s pushback on renewables has also disrupted momentum, while the Iran conflict and prologned closure of the Strait of Hormuz has triggered price volatility in the sourcing of some key metals.
No turning back
However, hyperscalers and the broader tech industry in general are unlikely to scale back on renewable energy procurement, the report suggests. According to data collected in the S&P Global Corporate Sustainability Assessment, around 67% of the energy used in data centres came from renewable sources last year, a figure that has ‘risen sharply’ over the past four years.
‘Data centres have become integral to US infrastructure, and their power supplies are a critical component,’ the report notes. ‘Given the need for security and contingency planning, carbon-free energy options – including renewables – will continue to be leveraged for years to come, helping hyperscalers at least partially meet their sustainability objectives.
‘That said, the energy space is prone to disruptions, with providers seeking non-intermittent, carbon-free, cost-effective alternatives to renewables. To date, no technology can consistently check all three boxes.’ Read more here.
