Google has acquired a stake in Taiwan's New Green Power (NGP), a solar power firm owned by a BlackRock fund, with plans to procure up to 300 megawatts of renewable energy. This move aligns with Google's ongoing efforts to reduce carbon emissions across its operations and supply chains.
As companies face increasing pressure from investors to mitigate greenhouse gas emissions, Big Tech firms like Google are setting ambitious targets. Google's overarching goal is to operate on carbon-free energy globally. However, rising demand for data-processing capacity, driven by advancements in artificial intelligence, has contributed to a surge in emissions. Taiwan, where Google has significant cloud technology infrastructure, including a data center and offices, currently relies on fossil fuels for approximately 85% of its power generation.
"The goal of this investment is really to support the build-out of a large-scale solar pipeline in Taiwan", stated Amanda Peterson Corio, Google’s Global Head of Data Center Energy. This strategic move is aimed at fostering renewable energy development in the Asia-Pacific region, which faces challenges such as underdeveloped infrastructure and regulatory constraints that limit corporate access to green power.
New Green Power, backed by BlackRock's Climate Infrastructure fund, is a prominent solar developer and operator in Taiwan. David Giordano, Global Head of Climate Infrastructure at BlackRock, highlighted the firm’s role in advancing Taiwan's renewable energy sector. While neither Google nor BlackRock disclosed the exact size of the equity stake, Corio indicated that the investment would catalyze financing for NGP’s 1-gigawatt solar energy pipeline.
Taiwan has set ambitious solar capacity targets, aiming for 20 GW by 2025 and up to 80 GW by 2050. This partnership is expected to play a significant role in achieving these goals.
In addition to utilizing the purchased solar power for its own operations, Google plans to distribute some of the energy to its suppliers and manufacturers in Taiwan. This approach is intended to lower Google's Scope 3 emissions indirect emissions tied to its value chain by enabling suppliers to access renewable energy.
Google's investment in NGP not only underscores its commitment to sustainability but also highlights the growing trend among global tech companies to integrate renewable energy solutions into their operational strategies.