The rapid growth of artificial intelligence (AI) has led to an unprecedented expansion of data centers, resulting in a significant increase in power demand. To meet this demand, tech giants are turning to solar power, driving a boom in the renewable energy sector. According to JLL, the power demand from data centers is expected to double by 2029, with solar power emerging as a clear winner in the near term.

The advantages of solar power are clear. Unlike advanced nuclear reactors, which are still in the development stage, solar power is a proven technology. Additionally, the average completion time for a new solar farm is approximately 18 months, compared to years for new natural gas power plants. Solar power is also one of the lowest-cost sources of new generating capacity, making it an attractive option for tech companies looking to power their data centers.

Since the start of 2025, tech companies and data center operators have backed 12 solar deals, each adding more than 100 megawatts of capacity to the grid. Meta, in particular, has been aggressive in its pursuit of solar power, inking deals with Engie, Zelestra, and RWE for a combined 995 megawatts of capacity. Microsoft has also made significant investments, adding 864 megawatts of solar power to its portfolio through deals with EDP Renewables North America and AES.

Amazon, too, has entered the fray, backing a hybrid project on the Iberian Peninsula that includes wind, solar, and pumped-hydroelectric storage. The deal includes 212 megawatts of solar power. Other companies, such as Cisco and Telecom Argentina, have also made significant investments in solar power to fuel their data centers.

The trend is not limited to the United States, with data center operators in India and Italy also investing in solar power. CtrlS, an Indian data center operator, has built a 125-megawatt solar facility in two phases, while Telecom Argentina has agreed to buy electricity from a 130-megawatt solar farm developed by MSU Green Energy. In Italy, Data4 has signed a 10-year deal with utility Edison Energia to buy power from a 148-megawatt solar farm.

The surge in demand for solar power is likely to continue as tech companies continue to expand their data centers to support the growth of AI. With its proven technology, quick deployment time, and low cost, solar power is well-positioned to meet the power demands of the tech industry. As the industry continues to grow, it will be interesting to see how solar power and other renewable energy sources evolve to meet the increasing demand for clean energy.

In the near term, the implications of this trend are clear. Solar power companies and developers are likely to see a significant increase in demand, driving growth and investment in the sector. Additionally, the increased adoption of solar power will help reduce the carbon footprint of the tech industry, contributing to a more sustainable future.

As the tech industry continues to drive innovation and growth, it will be important to monitor the impact of AI on the power sector and the role that solar power and other renewable energy sources will play in meeting the increasing demand for clean energy.