Google has agreed to make an equity investment in New Green Power (NGP), a Taiwan-headquartered solar power producer that was fully acquired by BlackRock in August 2022.
The investment, whose exact size was not disclosed, is part of a deal reached by Google and BlackRock’s climate infrastructure business, which also includes NGP offering Google the right to purchase up to 300 megawatts of solar power from a pipeline of solar assets in Taiwan.
A July 1 press release said the potential for clean energy could also extend to Google’s suppliers in the region.
A BlackRock spokesperson told FinanceAsia that Taiwan is “one of the world’s most attractive energy transition markets” and authorities are targeting 20 gigawatts of solar capacity by 2025 and 80 gigawatts by 2050.
The spokesperson added that strong fundamentals remain in energy transition investments in Taiwan, driven by growing energy demand and a tight supply margin; strong regulatory support for renewables; and from planned stage coal.
“Over the coming year, we continue to see the best investment opportunities in solar, battery storage and electric vehicle charging infrastructure,” the spokesperson said.
The need for advanced digital infrastructure, the press release emphasized, has increased the importance of renewable and efficient energy solutions.
Amanda Peterson Corio, global head of data center energy at Google, said the Google team is aiming to reach net zero in its operations and value chain, which must be supported by carbon-free energy sources 24/7.
“The path to achieving these goals is challenging and will require both commercial efforts and broader energy systems transformation,” he said.
According to BlackRock’s The New Infrastructure Blueprint, demand for more powerful infrastructure such as data centers is increasing globally due to the rise of remote work, video streaming and artificial intelligence (AI).
Global annual spending on data center construction is expected to reach $49 billion by 2030, while the International Energy Agency predicts that power from data centers, artificial intelligence and other technologies will more than double to 1,000 terawatt-hours by 2026, which is approximately equal. Japan’s electricity consumption today.
“Technology companies and other corporations are looking for ways to secure long-term access to green electricity and are therefore entering into power purchase agreements and strategic partnerships with renewable energy producers in key markets,” explained a BlackRock spokesperson.
BlackRock’s head of global climate infrastructure, David Giordano, commented in a press release: “As we witness growing demand for digital services powered by artificial intelligence and data-centric technologies, it’s important to invest in the infrastructure, not just the one that supports it. growth is also in line with our strategy to invest in clean energy.
According to BlackRock Investment Institute’s Transition Scenario, average annual investment in the global energy system is projected to increase from about $2 trillion today to $4.5 trillion annually by 2040.
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