Microsoft Deal Signals Booming Demand from Data Centers to Power AI

General view of Microsoft Corporation headquarters at Issy-les-Moulineaux, near Paris, France, April 18, 2016. REUTERS/Charles Platiau/File Photo
General view of Microsoft Corporation headquarters at Issy-les-Moulineaux, near Paris, France, April 18, 2016. REUTERS/Charles Platiau/File Photo
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Microsoft Deal Signals Booming Demand from Data Centers to Power AI

General view of Microsoft Corporation headquarters at Issy-les-Moulineaux, near Paris, France, April 18, 2016. REUTERS/Charles Platiau/File Photo
General view of Microsoft Corporation headquarters at Issy-les-Moulineaux, near Paris, France, April 18, 2016. REUTERS/Charles Platiau/File Photo

US utilities are finally signing concrete supply deals with data-center operators as the artificial-intelligence wave sparks a surge in power demand, paving the way for higher profits in the coming quarters.

Data centers are expected to account for 8% of the power generated in the US by 2030, compared with 3% in 2022, according to a Goldman Sachs report in May.

Here are some deals announced by utilities in 2024, according to Reuters.

Constellation Energy signed an exclusive deal with Microsoft to restart one of the units at the Three Mile Island nuclear plant in Pennsylvania.

Under the agreement, the utility will provide 835 megawatts (MW) of energy to the tech giant's data centers. The deal would also mark the first ever restart of a nuclear power plant in the US after it was shut down.

Ameren signed a supply deal with a data center with a power capacity of 250 megawatt (MW). It has also received expansion commitments and executed new contracts for more 85 MW of additional load for smaller data centers and other industries across Missouri and Illinois.

Alliant Energy said it has executed multiple power supply deals with data centers, but did not disclose details.

Exelon said it is in the engineering phase for more than 5 GW of data center capacity. Some data-center customers have also made deposits for ComEd - Exelon's subsidiary - to order transmission and breakers, the firm said during a post-earnings call.

American Electric Power signed letters of intent to power an additional 15 GW of data centers by the end of the decade.

Xcel Energy will supply power to Meta Platforms' data center in Minnesota, expected to come online in late summer 2025.

Entergy has received legislative approval for investment in transmission and generation to serve Amazon's upcoming Amazon Web Services (AWS) facility in Mississippi. Pinnacle West Capital has more than 4,000 MW of committed data center customers, not including the backlog of more than 10,000 data center requests it has received.

AES signed an agreement with Google for 310 megawatts to support its Ohio data centers.

It further expanded a previously announced partnership with Google and signed a 15-year power purchase agreement for 727 megawatts in Texas. Talen Energy announced a deal to supply electricity and its 960-megawatt data center campus to Amazon's AWS in Pennsylvania.

NextEra's renewables segment saw a rise of 3 gigawatts (GW) worth of renewables and storage projects in second quarter, including Google's 860 megawatts (MW) demand for its data center power.



SDAIA Receives Recognition for Innovative Projects at WSIS Summit in Geneva

SDAIA’s nominated projects represented a distinguished set of technological initiatives that demonstrated innovation, relevance, and impact in their respective fields - SPA
SDAIA’s nominated projects represented a distinguished set of technological initiatives that demonstrated innovation, relevance, and impact in their respective fields - SPA
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SDAIA Receives Recognition for Innovative Projects at WSIS Summit in Geneva

SDAIA’s nominated projects represented a distinguished set of technological initiatives that demonstrated innovation, relevance, and impact in their respective fields - SPA
SDAIA’s nominated projects represented a distinguished set of technological initiatives that demonstrated innovation, relevance, and impact in their respective fields - SPA

The Saudi Data & AI Authority (SDAIA) received certificates for its nominated projects, which were recognized among the best entries at the 2025 World Summit on the Information Society (WSIS) Prizes held in Geneva, Switzerland, highlighting SDAIA’s innovative contributions to the fields of data and artificial intelligence (AI).

SDAIA’s nominated projects represented a distinguished set of technological initiatives that demonstrated innovation, relevance, and impact in their respective fields.

Out of 973 submissions from various countries, they were chosen after an expert evaluation conducted by the International Telecommunication Union (ITU), SPA reported.

The nominated projects included the government cloud-computing platform “Deem,” which provides integrated and flexible cloud services for government entities; the “Nafath” application for biometric identity verification; the “Serti” service within the “Tawakkalna” app that enables users to display their certified academic qualifications; the “Tahseen” project, which uses AI to restore and enhance historical media; and the “Allam” and “Sawtak” projects, both of which represent a significant leap in supporting and processing Arabic using large language models and speech recognition technologies.

These achievements reflect the Kingdom’s commitment, through SDAIA, to reinforcing its global standing as a trusted authority in data and AI, advancing the national digital transformation agenda, and supporting the goals of Saudi Vision 2030. They also contribute to enhancing the Kingdom’s regional and international competitiveness in technology and innovation.