Why Data Centers Are Fueling a Solar Energy Boom in 2025
By Tim De Chant – March 30, 2025
The rapid expansion of artificial intelligence has triggered an explosive demand for data centers, which are now embracing solar energy as their preferred power solution. With power consumption from data centers expected to double by 2029, key players in the tech industry are racing to secure reliable and scalable energy sources. Among these, solar power has emerged as a frontrunner in 2025, thanks to its affordability, deployment speed, and clean energy benefits.
The Power Behind AI: Data Centers Need Energy
As AI integrates deeper into businesses and consumer platforms, tech giants are scaling up their data center capacities at an unprecedented rate. According to real estate and investment management firm JLL, the sector’s power demand is set to double within four years. This surge has broadened investment interest in energy sources, with emphasis falling on solar as a fast, cost-effective, and scalable solution.
Why Solar? Speed, Price, and Proven Reliability
Unlike experimental nuclear technologies or long-lead-time natural gas plants, solar energy stands out as a mature and commercially viable power source. A new solar farm typically takes around 18 months to build — significantly faster than other infrastructure projects — and it ranks among the cheapest new sources of energy globally.
While solar power does face limitations like intermittency — generation halts when the sun isn’t shining — its advantages have outweighed the drawbacks, especially when paired with energy storage or hybrid systems. Thanks to technological maturity and falling production costs, solar has become the preferred choice for sustainability commitments and infrastructure agility.
Big Solar Deals in 2025: 100 Megawatts and Beyond
In the first quarter of 2025 alone, there have been over a dozen major solar contracts, each exceeding 100 megawatts in capacity. These deals reflect a strategic shift from merely experimenting with renewables to integrating solar as a critical component of power strategy for tech giants and data center operators.
January Deals
- Meta launched the year with a 200-megawatt contract with Engie to develop a solar project in Texas near one of its existing data centers. The company already boasts over 12 GW of renewable energy capacity.
- The Stargate AI collaboration between OpenAI, Oracle, and SoftBank revealed it would partially run on solar from SB Energy.
- Meta further secured a 595-megawatt contract with Spain’s Zelestra, a renewable energy developer.
February Deals
- Meta added another 505-megawatt solar project in Coleman County, Texas via Cypress Creek Renewables.
- Microsoft agreed to purchase 389 megawatts from EDP Renewables North America across three locations in Illinois and Texas.
- Amazon invested in a 476-megawatt hybrid project — solar, wind, and hydroenergy — on the Iberian Peninsula, with at least 212 megawatts attributed to solar.
- CtrlS completed a 125-megawatt solar farm in India, showing momentum outside North America.
- Telecom Argentina entered a deal for 130 megawatts from a solar facility located in South America.
March Deals
- Microsoft unveiled three new solar projects totaling 475 megawatts across Illinois, Michigan, and Missouri, developed by AES.
- Cisco finalized a 100-megawatt solar agreement in Texas with X-Elio.
- Meta committed to an additional 200 megawatts in a partnership with RWE, reinforcing its solar investments near Austin, Texas.
- Data4 in Italy signed a 10-year agreement with Edison Energia for 148 megawatts, marking one of the largest solar power contracts in Europe in 2025.
The Bigger Picture: More Deals on the Horizon
The pace of investment in solar energy shows no sign of slowing. With AI capabilities becoming essential for modern enterprise solutions, tech companies must ensure their digital infrastructure remains scalable and sustainable. Solar power’s reliability, low cost, and proven performance make it a go-to choice, not just in North America, but globally.
This trend reflects broader strategic goals: cost savings, emission reductions, and supply chain independence. Solar allows companies to hedge against fossil fuel volatility while aligning with stakeholder ESG expectations and government regulations.
What’s Next for Solar and Data Centers?
As the demand for data processing continues to surge, especially driven by AI, so too will the demand for electricity. Expect more companies to make long-term renewable power purchase agreements (PPAs), invest in on-site solar-plus-storage solutions, and develop regional partnerships to optimize grid capacity.
Investments in grid infrastructure, energy storage technologies, and hybrid energy solutions will further enhance solar’s value proposition. With over a dozen deals exceeding 100 megawatts already signed in 2025, the solar boom is just getting started.
Bottom line: In 2025, solar isn’t just a green energy solution — it’s a strategic imperative for the tech industry’s future.
