TOKYO -- Google has entered into an arrangement with Japanese renewable energy providers who will build solar farms dedicated to providing electricity to the company's data centers in Japan, Nikkei has learned.
Google recently signed corporate power purchase agreements with Clean Energy Connect (CEC) and Shizen Energy, marking the first time the company signed such contracts on Japanese soil.
CEC will invest 10 billion yen ($63.9 million) through 2026 to build roughly 800 solar farms that will provide about 70,000 kilowatts of capacity. CEC is a Tokyo joint venture that includes trading house Itochu and Kansai Electric Power as shareholders.
Shizen Energy, based in Fukuoka city, will develop a solar project dedicated to Google in the Kanto region, which includes Greater Tokyo. Operation is expected to start in 2027 with capacity at 30,000 kW.
As of 2022, carbon-free renewable energy accounted for 64% of the electricity consumed by Google, including data centers and offices. The goal is to raise this share to 100% by 2030.
Renewables account for roughly 90% of Google's power consumption in various U.S. states, as well as in Denmark and Finland. But the ratio in Japan wallows at 16%.
Google will decarbonize operations in Japan by using "non-fossil certificates," which confirm none of the electricity is derived from fossil fuels. Renewable energy supply contracts last for about 15 to 20 years, allowing Google to easily estimate costs down the road, according to a company spokesperson.
A non-fossil certificate will first be used for a data center in Chiba prefecture near Tokyo. Google is expected to start up data centers in Hiroshima and Wakayama prefectures, indicating that the company may increase procurement of renewable energy in Japan.
Amazon is working with trading house Mitsubishi Corp., CEC and other partners to supply solar energy to data centers and fulfillment centers in Japan. Amazon is also installing solar panels on the rooftops of fulfillment centers.
As of 2022, 90% of the power Amazon consumes across the world came from renewable energy. The goal is to reach 100% by 2025.
Microsoft also plans to have renewables cover all its global electricity consumption by 2025. In Japan, Microsoft signed a corporate power purchase agreement with Shizen Energy, and a dedicated solar plant started commercial operations this February.
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