Meta purchased 1 gigawatt of solar power this week

Meta signed three deals this week to buy nearly 1 gigawatt of solar energy as it races to power its lofty AI ambitions.

The three agreements bring Meta’s total solar purchases to more than 3 gigawatts of capacity this year. Solar power is cheap and quick to build, and as a result, it has become an energy source that technology companies are turning to as their data center fleets double in size.

Yesterday, Meta announced two agreements in Louisiana to purchase environmental properties for a total of 385 megawatts of electricity. Both projects are expected to be completed two years from now.

The move follows a larger deal announced on Monday in which Meta purchased 600 megawatts of a massive solar farm near Lubbock, Texas. The project will also begin commercial operations in 2027.

While the Texas power plant will not connect directly to metadata centers, it will feed into the local grid, offsetting usage by utilities.

However, the Louisiana deals include purchasing certificates that allow Meta to offset carbon-intensive energy sources.

Environmental Attribute Certificates (EACs), sometimes called renewable energy certificates, have been criticized by experts because they obscure the true carbon footprint of technology companies’ operations, which has ballooned as AI’s increased use of electricity.

The EAC was introduced years ago when renewables were expensive compared to fossil fuel generators. It allowed anyone to buy electricity, but it also gave companies the option of paying extra to offset their emissions — and offset the higher costs of renewable energy. They have helped encourage developers to build more renewable projects.

But the cost of new solar and wind power has fallen dramatically since then, as renewables have undercut new fossil power and sometimes coal- and natural gas-based power plants. East African countries are not offering the same incentives as before, and experts wonder how much additional renewable energy they are incentivizing.

Experts say that if companies really want to offset their new energy use with AI, they should encourage developers to build new renewable capabilities.