Are Renewables A Viable Solution?

Context & OpportunityData centers could consume as much as 12% of U.S. electricity by 2030. To keep pace with this growth while meeting sustainability goals, many operators are turning to renewable energy paired with storage and smart grid strategies.

Key Benefits

• Scalability:

  • Texas’s ERCOT region is adding solar capacity at an unprecedented rate, with generation expected to more than double from 2024 to 2029.

  • Battery-storage deployments are tripling, smoothing out the intermittency of wind and solar.

• Cost Competitiveness:

  • Levelized costs for new solar and wind projects are now on par—or even below—those for natural gas.

  • Long-term power-purchase agreements (PPAs) lock in low, predictable rates.

• Industry Leadership:

  • Google matched 100% of its annual electricity consumption with renewables in 2017—and continues to do so every year.

  • By 2030, Google aims to run all its facilities on 24/7 carbon-free energy, co-developing solar + storage projects through partnerships like Intersect Power & TPG Rise Climate.

Challenges & Mitigations

Challenge 1: Variable output during cloudy or calm days

Solution 1: Grid-scale batteries and hybrid microgrids provide buffer capacity

Challenge 2: Aligning load with generation peaks

Solution 2: Demand-response programs shift non-critical workloads to off-peak periods

Challenge 3: Regulatory and interconnection delays

Solution 3: Leveraging incentives (e.g., Texas’s Competitive Renewable Energy Zones) and early stakeholder engagement

Real-World Example: 

For a deeper dive into how renewables are reshaping data center power strategies, check out a recent paper written by Andrew Schaper: Accelerating a 1 GW Off-Grid Data Center Deployment in Texas.

Takeaway:With rapidly falling costs, aggressive procurement by hyperscalers, and advances in storage and grid integration, renewables are not only viable but increasingly the default choice for forward-looking data center operators.