Tech Giant Microsoft Secures $6 Billion Agreement for AI Processing Units Relying entirely on Renewable Energy Sources.
Microsoft has made a significant move in the world of AI and sustainability with the announcement of a new AI infrastructure project in Northern Norway. The project, valued at approximately $6.2 billion, is a joint venture between AI hyperscaler Nscale and industrial investment company Aker, and is named "Stargate Norway".
The project's location was carefully chosen for its abundant hydropower, low local electricity demand, cool climate, and established industrial infrastructure. The goal is to provide the latest and most advanced AI services from Microsoft 365, while ensuring the project is powered entirely by renewable energy.
Jon Tinter, President of Business Development and Ventures for Microsoft, expressed his excitement about the new project, stating it will help the company meet the exponentially growing demand for efficient, scalable, and sustainable AI compute power.
The contract for the project will be delivered in staged deployments, beginning in 2026. The agreement aims to deliver sustainable AI infrastructure for all of Europe, positioning Narvik as a launchpad for Europe's sovereign cloud.
Øyvind Eriksen, President & CEO of Aker ASA, a Norwegian industrial investment company, stated that the agreement with Microsoft positions Narvik as a launchpad for Europe's sovereign cloud. He further added that the project will convert clean hydropower into strategic digital capacity, and create a secure, scalable, and energy-efficient infrastructure for AI workloads across Europe.
The new venture comes as Microsoft's carbon footprint has grown since 2020, mainly due to significant growth in data centers to meet increasing demand for AI computing power. In response, Microsoft has introduced a policy for some of its key suppliers to use 100% carbon-free electricity, and has also acknowledged that the rapid growth of AI has created challenges for the company's sustainability goals.
However, Microsoft's efforts to combat climate change are not limited to this project. The company has launched sustainability goals including becoming carbon negative, water positive, and zero waste by 2030. The AI infrastructure project in Norway is part of these broader efforts.
Earlier this year, Microsoft's Chief Sustainability Officer acknowledged the challenges posed by the rapid growth of AI. The new project in Norway is a significant step towards addressing these challenges and ensuring that Microsoft 365's AI services are not only advanced but also sustainable.
In conclusion, the partnership between Microsoft, Nscale, and Aker marks a significant step forward in the development of sustainable AI infrastructure. The project in Northern Norway is expected to play a crucial role in meeting Europe's growing demand for efficient, scalable, and sustainable AI compute power, while also contributing to Microsoft's broader sustainability goals.
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