The massive $100 billion Stargate joint venture, a partnership between OpenAI, Oracle, and SoftBank Group, is set to be powered, at least in part, by solar and batteries, according to a report from Bloomberg. This move comes as the growth in cloud computing and AI has sent developers and tech companies scrambling to secure power, with the U.S. Department of Energy predicting that data centers could consume as much as 12% of all power produced in the U.S. by 2028.

The renewable power installations will be built by SoftBank-backed SB Energy, although they are unlikely to be the venture's sole source of energy. Stargate aims to build a slew of new data centers to drive artificial intelligence applications, and the use of solar and battery power is seen as a crucial step in addressing the looming energy crunch.

The energy demands of data centers have become a significant concern in recent years. The U.S. Department of Energy expects that data centers could consume as much as 12% of all power produced in the U.S. by 2028, up from 4.4% in 2023. This rapid growth has led to fears that up to 50% of new data centers could be underpowered by 2027.

In response to this challenge, nuclear power has emerged as a popular option for data center developers and tech companies. Google, for example, has signed a 500-megawatt deal with nuclear startup Kairos, while Microsoft is restarting one of the shuttered reactors at Three Mile Island. However, nuclear power's recent history has been marred by cost overruns and delays, making it a less viable option for addressing the near-term energy shortage.

Solar and wind farms, on the other hand, offer a much quicker solution. Compared to nuclear and natural gas plants, they can be completed in about half the time, according to one study of 50 years worth of power plant projects. More recent estimates suggest that the average time to completion for a solar power plant is around 18 months. This speed, combined with their inherent modularity, makes them an attractive option for data centers.

The longest part of any solar project is permitting and interconnection, when the facility is connected to the grid. However, for data centers, grid connections can be optional – many could take power directly from the source. Given the apparent urgency of Stargate, it's possible that permitting could be sped along, too, leaving solar as the likely frontrunner for the first data centers.

The decision to use solar and battery power for Stargate's data centers is a significant step towards addressing the energy demands of the growing AI industry. As the venture looks to drive innovation in artificial intelligence applications, its commitment to renewable energy sources sets a positive precedent for the tech industry as a whole.

With the first commercial reactors from nuclear startups not expected to come online until 2030, the use of solar and battery power provides a much-needed solution to the near-term energy shortage. As the tech industry continues to grow and evolve, the importance of sustainable and renewable energy sources will only continue to increase.