Google penned a long-term deal with US-based Energix Renewables, in an agreement that could help the technology giant power its data centres housing AI applications, as well as advance a wider net-zero strategy.

Energy supplier Energix stated it will initially provide Google with 1.5 gigawatt-peak of solar project development through 2030, with an option to expand.

Morgan Stanley served as the sole financial advisor for Energix for the agreement, and its managing director Jorge Iragorri explained the agreement “underscores the importance of collaboration among market leaders across sectors to meet the goals of energy transition and the power needs of transformative technology, such as AI applications and the data centers that house them”.

Indeed, Google, among others, are looking to power rapidly expanding AI data centres with cleaner energy, and the agreement was pitched by both companies a transformative for the “renewable energy landscape in the US”.

As part of the deal, Energix will supply electricity and Renewable Energy Credits (RECs) generated from its solar projects, to Google, which in-turn will offer tax equity.

This ties into the US’ government’s Inflation Reduction Act, which allows corporate entities to acquire credits to support the development of clean energy projects across the country.

Amanda Corio, global head of data centre energy at Google, added: “This type of collaboration is essential as we continue to progress towards our ambition to run on 24/7 carbon-free energy on every grid where we operate every hour of every day.”

Google has a target to hit net-zero emissions for its global data centres and operations by 2030.

In May, it announced a project to expand its Finland facility and to deploy excess heat from the data centre to warm up homes and other local buildings. It will also employ solar panels for its new data centre in the Netherlands.