I’ve said before that cloud companies are reaching a scale at which new problems arise.
Big data centres turn the electricity infrastructure on its head when vast amounts of power are consumed in single location. Compare that to retail power where small amounts of power are sent to homes:
Microsoft has struck a deal with General Electric to use all of the energy produced at GE’s recently built 37MW wind farm in County Kerry, Ireland. The company states it will use the energy to support the expansion of its cloud services in the country.
Whats happening here ?
Microsoft is effectively building its own power stations to be able to grow. Sure, its paying GE to build and operate it via an outsourcing agreement.
Being a cloud provider is complex and CapEx intensive. Signing a 15 year supply agreement for electricity is a major financial burden.
Forget the green-washing, wind power is now substantially cheaper than coal, gas or nuclear. Its only a public service when you pay more.
Link:Bloomberg New Energy – London Summit 2017 – PDF – https://data.bloomberglp.com/bnef/sites/14/2017/09/BNEF-Summit-London-2017-Michael-Liebreich-State-of-the-Industry.pdf