Navigating Sustainable Procurement of Energy in Data Centres

As data centres become the foundation of the global digital economy, securing energy sustainably has emerged as one of the sector’s most pressing priorities. 

The growth of AI workloads, cloud computing and edge infrastructure is intensifying electricity demand, requiring operators to balance scale with sustainability. 

Through innovative energy procurement strategies, companies such as Google, Microsoft and Amazon are reshaping how the industry sources power – not only to reduce emissions but also to ensure long-term energy resilience.

So – what are some of the latest sustainable energy procurement initiatives at the forefront of the industry?

Google invests in geothermal power

In February 2026, Ormat Technologies announced a long-term geothermal portfolio Power Purchase Agreement (PPA) with NV Energy to supply up to 150MW of clean-firm electricity to Google’s data centre operations in Nevada. Enabled through NV Energy’s Clean Transition Tariff (CTT), the agreement represents a model approach to sustainable procurement by pairing investment stability with carbon-free generation.

Doron Blachar, CEO of Ormat Technologies, says: “AI is fundamentally increasing electricity demand across the technology sector, and geothermal power is uniquely positioned to deliver the reliable, carbon-free power required to support that growth.

“This portfolio PPA provides long-term profitable revenue growth and clear visibility into our portfolio development plans, while solidifying our conviction in the expanded exploration and drilling activities we have undertaken over the past several years that laid the groundwork for securing this significant agreement and others like it.”

The portfolio structure allows multiple projects to be added as the company reaches commercial operation between 2028 and 2030, securing up to 15 years of reliable, carbon-free power beyond the final completion date.

The tariff mechanism behind the contract demonstrates how procurement frameworks can scale. By using the CTT, Google ensures that all costs of its electric service are fully covered while insulating other ratepayers from financial impact. 

Briana Kobor, Head of Utility Origination and Partnerships at Google, says: “The momentum of the Clean Transition Tariff through this agreement with NV Energy, Google and Ormat demonstrates a proven, scalable model for large customers to partner with utilities and technology providers to bring new clean capacity to the grid.

“By adding up to 150MW of new clean-firm geothermal capacity in Nevada, we are utilising a repeatable framework that fully covers all costs associated with our electric service, ensuring the CTT insulates other ratepayers while strengthening the reliability of the local power system.”

Unlike intermittent renewables, geothermal energy offers consistent baseload power, critical for data centres that operate continuously. For Nevada’s grid, the agreement will add up to 150MW of new clean-firm capacity, reinforcing grid reliability and serving as a repeatable blueprint for future corporate procurement strategies in other regions. It also helps Google sustain its broader objective of matching every hour of electricity consumption with carbon-free energy by the end of the decade.

Through this geothermal investment, Google demonstrates that responsible procurement extends beyond price efficiency – it seeks enduring solutions to reliability, decarbonisation and transparency.

Microsoft’s global approach to renewable procurement

Microsoft announced it had met its 2025 renewable energy goal in early February 2026, contracting enough clean electricity to match 100% of its consumption across data centres, offices and campuses worldwide. The company’s approach to procurement goes far beyond offsetting – it enables new capacity to be built through targeted power purchase agreements with partners across multiple continents.

With the company contracted to add 40GW of renewable energy to the grid – with 19GW already online – Microsoft is among the largest corporate buyers of renewables globally. Its partnerships demonstrate how distributed procurement delivers both environmental and social gains at scale.

In the United States, Microsoft’s agreement with Sol Systems exemplifies a localised model for shared value. The collaboration is expected to add over 500MW of solar energy to the grid from projects in Illinois, Ohio and Texas, alongside a US$50m community investment fund. Yuri Horwitz, CEO of Sol Systems, says: “From the beginning, our goal with Microsoft was to show what’s possible when energy buyers and developers work hand-in-hand with local communities.

“These projects are designed to produce power but, just as importantly, to create opportunity, trust and lasting value in the places where they’re built.”

Microsoft’s procurement activity also revives ageing infrastructure. In West Virginia, a PPA with Brookfield Renewable is modernising the historic Hawk’s Nest hydroelectric plant, returning it to grid service with long-term operational investment. 

Stephen Gallagher, CEO of Brookfield Renewable North America, says: “With the benefit of our offtake agreement with Microsoft, we’ve made major investments over the last five years to ensure that an asset that’s been around for nearly 100 years will continue for the next 100 years.”

From the Fitou wind farm in France to solar projects in Australia, many of Microsoft’s PPAs incorporate community engagement as a procurement principle – supporting local schools, training initiatives and biodiversity preservation. Discussing a 15-year power purchase agreement with Microsoft to provide renewable energy from Walla Walla solar facility, Michael Steiner, CEO at Fotowatio Renewable Ventures (FRV) – Australia and New Zealand, remarks that success begins with community trust. 

“We need to create this trust and engagement from day one on every project that we do,” says Michael. “If you don’t, you will not get anywhere, and your project probably will fail before you even start building.”

This distributed approach creates new energy capacity where demand is growing and ensures the resilience of supply for Microsoft’s expanding global data centre footprint. It also signals a maturing procurement model that prioritises availability, locality and long-term partnership.

Amazon’s procurement scale and European leadership

Amazon remains the largest corporate purchaser of carbon-free energy in Europe, according to BloombergNEF’s latest data, with a portfolio exceeding 10GW across more than 260 European projects. Through Amazon Web Services (AWS), the company is also a global leader, procuring more than 40GW of renewable capacity across more than 700 projects.

Amazon’s European portfolio reflects a procurement approach tied to grid modernisation and regional stability rather than isolated energy credits. Its PPAs support both onshore and offshore wind developments as well as solar farms, bringing new carbon-free energy directly to the grids that power data centres, hospitals and homes.

A 110MW PPA with RWE for Germany’s Nordseecluster B offshore wind project exemplifies this approach. With 900 MW total capacity, it is one of the largest offshore schemes enabled by a single corporate buyer. This partnership not only supports Germany’s decarbonisation strategy but also addresses grid volatility by adding predictable renewable supply.

Amazon’s strategy recognises that sustainable procurement must underpin both reliability and affordability. By investing early in large-scale projects, the company helps “stabilise electricity costs and create thousands of local jobs”, according to its sustainability team. Each new PPA increases grid capacity, diversifies generation sources and provides construction employment across regions hosting AWS infrastructure.

The company integrates resource efficiency directly into procurement objectives. AWS data centres in Europe achieved a Power Usage Effectiveness (PUE) of 1.15 in 2024, with some facilities reaching 1.04. Its Water Use Efficiency metric of 0.04 litres per kilowatt-hour demonstrates a combined focus on conserving energy and resources, advancing AWS’ goal of becoming water positive by 2030.

Amazon’s procurement of renewable energy therefore expands beyond electricity – it encompasses the operational practices that ensure energy use remains efficient and regenerative. With more than 10 GW of new regional capacity added through direct contracts, Amazon’s model underscores that long-term PPAs are not simply energy transactions but infrastructure partnerships.

The strategic role of procurement

Across all three companies, sustainable energy procurement features heavily in global strategy. As AI and cloud workloads intensify across hyperscale facilities, the reliability of energy supply increasingly dictates business continuity. By committing to long-term PPAs and direct partnerships with energy producers, data centre operators are embedding stability into the grid rather than merely drawing from it.

PPAs offer a mechanism to unlock new capacity, helping developers secure financing while guaranteeing buyers predictable access to clean energy. For suppliers, these agreements fuel investment in next-generation technologies such as geothermal, offshore wind, and grid-scale solar. For operators, they mitigate exposure to fluctuating energy markets and contribute to regional energy independence.

Equally, these models represent a shift in corporate accountability. They link operational growth with local benefits – supporting rural infrastructure, education and biodiversity in communities that host renewable developments. For the data centre industry, this integration of procurement and purpose defines a new version of sustainability, one built on mutual value creation and shared long-term interests.

The combined impact of initiatives by Google, Microsoft and Amazon is measurable not only in gigawatts but in the precedent they set for the wider sector. As power demand accelerates, these companies are showing how procurement frameworks can be used as levers for both supply security and decarbonisation – two sides of the same challenge shaping the industry's next decade.