In a strategic and environmentally-conscious move, Meta Platforms Inc. has signed a major solar power agreement with AES Corporation, securing 650 megawatts (MW) of solar energy. This deal represents one of the company’s most significant renewable energy commitments to date, aimed at powering its expanding network of AI-focused data centers. As AI continues to redefine the technological landscape, this move underscores Meta’s intention to meet the growing energy demands of artificial intelligence without compromising its sustainability goals.
The Deal in Detail
The agreement involves two large-scale solar projects—400 MW in Texas and 250 MW in Kansas. These facilities are expected to become operational within the next two to three years and will feed directly into the power grids that support Meta’s massive data infrastructure. By locking in clean energy sources now, Meta ensures a reliable and sustainable energy supply that aligns with the rising power needs of AI workloads, which are significantly more demanding than traditional data processing.
AES Corporation, a global power company, has been working with Meta on previous energy projects. This latest collaboration is part of a broader trend among tech giants who are rapidly scaling up both their AI capabilities and their renewable energy investments. AES has emphasized its role in helping Meta deliver energy reliably and sustainably—focusing on projects that also support the communities around them.
Why Solar? Why Now?
Meta’s decision to double down on solar comes at a time when AI development is surging. From personalized content delivery to generative AI tools and large language models, AI has moved from research labs into mainstream usage across Meta’s platforms like Facebook, Instagram, and WhatsApp.
However, AI’s appetite for power is enormous. Traditional data centers typically consume between 5–10 kilowatts (kW) per server rack. In contrast, AI-optimized data centers can demand up to 1 megawatt (MW) per rack—an almost 100-fold increase. Training and running AI models require immense computing resources, which translates into higher energy consumption and operational costs. Without a shift to renewable energy, such growth could drastically increase carbon emissions and energy expenses.
This challenge has driven Meta to adopt solar energy as a scalable, clean, and increasingly cost-effective solution. Solar power’s falling costs, combined with federal and state-level incentives, make it an attractive choice for companies looking to manage long-term energy expenses while meeting environmental, social, and governance (ESG) standards.
The Bigger Picture: Meta’s Green Energy Portfolio
With this latest addition, Meta’s renewable energy capacity has now surpassed 12 gigawatts (GW)—a number that puts it on par with some national utility providers. This portfolio includes multiple projects across wind and solar energy, often located near Meta’s data centers to reduce transmission losses and support local economies.
Earlier in 2024, Meta signed a 595 MW agreement with Zelestra, a renewable energy company, and procured another 200 MW from Engie, a European energy giant. In October, Engie agreed to supply Meta with 260 MW of solar energy from a new plant in the U.S., reinforcing Meta’s commitment to powering operations using only clean energy.
Meta first pledged to achieve net-zero emissions across its global operations back in 2020, and by 2021, it claimed that its operations were already supported by 100% renewable energy. However, the scale and energy intensity of new AI projects have necessitated further investments to stay true to that pledge. The 650 MW deal with AES, therefore, is not just about growth—it’s about maintaining leadership in sustainable innovation.
Community and Economic Impact
These large solar projects are also expected to bring substantial economic benefits to local communities in Texas and Kansas. Typically, projects of this size create hundreds of temporary construction jobs, long-term maintenance roles, and tax revenues for local governments. In some cases, renewable energy facilities also lease land from farmers or municipalities, providing them with steady income over decades.
Furthermore, these projects support regional grid stability and may reduce local electricity costs by adding cheaper solar energy to the mix, especially during peak demand hours.
The Competitive Landscape
Meta is not alone in its green energy push. Tech rivals like Google, Microsoft, and Amazon are also racing to secure clean energy to fuel their cloud and AI operations. Microsoft recently announced a plan to power all its data centers with zero-carbon energy sources by 2030, while Google aims to achieve 24/7 carbon-free energy use across its operations.
However, Meta’s solar-focused strategy gives it a distinct edge. Solar energy production typically aligns with peak energy usage times in data centers, especially during daylight-driven consumer activity on Meta’s platforms. Additionally, solar projects are often faster and cheaper to deploy than wind or nuclear options, offering scalability as AI demand surges.
Challenges Ahead
Despite its impressive strides, Meta faces some hurdles. One of the biggest is the intermittency of solar power—it’s not always available when energy is needed most, such as during nighttime or cloudy days. To address this, Meta is also exploring energy storage solutions and hybrid systems that blend solar with wind or battery storage.
Moreover, Meta has drawn scrutiny from environmental groups and lawmakers for reportedly considering gas-powered backup for some new AI data centers. A recent report suggested that Meta might build a natural gas plant in Illinois to ensure 24/7 reliability—raising questions about whether the company’s green image can withstand the full scope of its energy needs.
Conclusion
Meta’s 650 MW solar deal with AES marks a pivotal moment in the intersection of artificial intelligence and renewable energy. As AI demands continue to rise, so too does the responsibility to power that innovation sustainably. By investing in solar energy at scale, Meta is not only ensuring the performance and reliability of its future data centers but also setting a precedent for how tech companies can grow responsibly in an energy-hungry AI era.
This initiative reinforces that the future of AI isn’t just about smarter machines—it’s also about smarter energy choices.