AES Expands Renewable Energy Agreement with Microsoft to California Data Centers

Rhea-AI Summary

AES Corporation has announced a 20-year renewable energy agreement with Microsoft to power its data centers in California. This partnership aims to help Microsoft achieve its 100/100/0 by 2030 sustainability goal, providing 110 MW AC solar and 55 MW of 4-hour storage from the California Independent System Operator region. AES has made significant strides in clean energy, ranking as the top developer selling to corporations via Power Purchase Agreements (PPAs) in 2021, signing nearly 5 GW of new PPAs globally.

Positive

• 20-year agreement with Microsoft enhances AES's position in renewable energy.
• Supports Microsoft's goal of 100% renewable energy by 2030.
• Provides a scalable carbon-free energy solution for Microsoft’s California data centers.
• Increased AES’s reputation as a leading provider of clean energy, signing nearly 5 GW of new PPAs globally in 2021.

Negative

• None.

The 20-year agreement will support Microsoft in achieving its 100/100/0 by 2030 goal

ARLINGTON, Va., May 4, 2022 /PRNewswire/ -- The AES Corporation (NYSE: AES) today announced a 20-year agreement with Microsoft to provide renewable energy to its data centers in California. The agreement expands upon prior renewable energy agreements between the two companies, with AES supporting Microsoft in its pursuit of its 100/100/0 by 2030 goal. 

"Working with Microsoft, we co-created a scalable 24/7 carbon-free solution to power its data centers in California."

Microsoft, one of the world's largest purchasers of renewable energy, will use this highly customized agreement to partially match their load at their California-based data centers. AES will source the energy from a portfolio of 110 MW AC solar and 55 MW, 4-hour storage projects in the California Independent System Operator (CAISO) region.

"Microsoft continues to be a leader in the clean energy transition," said Andrés Gluski, AES President and CEO. "Working in tandem with Microsoft, we co-created a scalable 24/7 carbon-free solution to power its data centers in Virginia, and we are now proud to move forward on another innovative renewable energy supply structure in California."

"AES' presence and critical capabilities in California will support our transition to 100% renewable energy by 2025 and enable us to move forward in having 100% of our electricity matched by zero-carbon resources all the time in the state," said Brian Janous, General Manager Energy & Renewables at Microsoft. "We've looked to AES as a partner in PJM and now California based on its ability to create innovative commercial structures that meet our needs." 

Through collaboration with its customers to help meet their unique energy commitments and outcomes, AES signed nearly 5 GW of new Power Purchase Agreements (PPAs) globally in 2021 and was ranked by BNEF as the top developer selling clean energy to corporations through PPAs. 

About AES 
The AES Corporation (NYSE: AES) is a Fortune 500 global energy company accelerating the future of energy. Together with our many stakeholders, we're improving lives by delivering the greener, smarter energy solutions the world needs. Our diverse workforce is committed to continuous innovation and operational excellence, while partnering with our customers on their strategic energy transitions and continuing to meet their energy needs today. For more information, visit AES here.  

Safe Harbor Disclosure

This news release contains forward-looking statements within the meaning of the Securities Act of 1933 and of the Securities Exchange Act of 1934. Such forward-looking statements include, but are not limited to, those related to future earnings, growth and financial and operating performance. Forward-looking statements are not intended to be a guarantee of future results, but instead constitute AES' current expectations based on reasonable assumptions. Forecasted financial information is based on certain material assumptions. These assumptions include, but are not limited to, our expectations regarding the COVID-19 pandemic, accurate projections of future interest rates, commodity price and foreign currency pricing, continued normal levels of operating performance and electricity volume at our distribution companies and operational performance at our generation businesses consistent with historical levels, as well as the execution of PPAs, conversion of our backlog and growth investments at normalized investment levels and rates of return consistent with prior experience.

Actual results could differ materially from those projected in our forward-looking statements due to risks, uncertainties and other factors. Important factors that could affect actual results are discussed in AES' filings with the Securities and Exchange Commission (the "SEC"), including, but not limited to, the risks discussed under Item 1A: "Risk Factors" and Item 7: "Management's Discussion & Analysis" in AES' Annual Report on Form 10-K and in subsequent reports filed with the SEC. Readers are encouraged to read AES' filings to learn more about the risk factors associated with AES' business. AES undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except where required by law.

Any Stockholder who desires a copy of the Company's 2021 Annual Report on Form 10-K filed February 28, 2022, with the SEC may obtain a copy (excluding Exhibits) without charge by addressing a request to the Office of the Corporate Secretary, The AES Corporation, 4300 Wilson Boulevard, Arlington, Virginia 22203. Exhibits also may be requested, but a charge equal to the reproduction cost thereof will be made. A copy of the Form 10-K may be obtained by visiting the Company's website at www.aes.com.

Website Disclosure

AES uses its website, including its quarterly updates, as channels of distribution of Company information.  The information AES posts through these channels may be deemed material.  Accordingly, investors should monitor our website, in addition to following AES' press releases, quarterly SEC filings and public conference calls and webcasts.  In addition, you may automatically receive e-mail alerts and other information about AES when you enroll your e-mail address by visiting the "Subscribe to Alerts" page of AES' Investors website.  The contents of AES' website, including its quarterly updates, are not, however, incorporated by reference into this release.

 

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SOURCE The AES Corporation

FAQ

What is AES Corporation's recent agreement with Microsoft?

AES Corporation announced a 20-year renewable energy agreement with Microsoft to support its data centers in California.

How does the AES and Microsoft agreement support sustainability goals?

The agreement aids Microsoft in achieving its 100/100/0 sustainability goal by 2030, providing renewable energy for its operations.

What energy sources will AES provide under the new agreement?

AES will supply 110 MW AC solar power and 55 MW of 4-hour storage from projects in the California Independent System Operator region.

How much renewable energy has AES signed in 2021?

AES signed nearly 5 GW of new Power Purchase Agreements (PPAs) globally in 2021.

What is the significance of the AES and Microsoft partnership?

The partnership enhances AES's position as a top developer of clean energy, helping Microsoft to transition to 100% renewable energy.