Google has announced its acquisition of a stake in Taiwan’s New Green Power, a leading solar power firm owned by a fund managed by BlackRock. This strategic investment positions Google to purchase up to 300 megawatts of renewable energy from New Green Power, significantly aiding its efforts to reduce carbon emissions from its operations and those of its suppliers.
The pressure on companies to mitigate greenhouse gas emissions linked to their activities and value chains has been mounting, driven by investors and regulatory frameworks. Big Tech firms, in particular, have set some of the most ambitious targets in this arena. Google has set its sights on operating entirely on carbon-free energy across all its locations. However, the surge in demand for data-processing capacity, particularly to support advancements in artificial intelligence, has led to a corresponding increase in emissions.
Taiwan plays a critical role in Google’s cloud technology infrastructure, housing a data center and company offices. Despite its advancements, the region remains heavily reliant on fossil fuels, with nearly 85% of its power being generated from these sources. Amanda Peterson Corio, Google’s Global Head of Data Center Energy, highlighted the significance of this investment in promoting the development of a large-scale solar pipeline in Taiwan.
The Asia Pacific region, including Taiwan, presents unique challenges for decarbonization due to its less developed infrastructure and regulatory restrictions that limit corporate users’ ability to purchase green power. New Green Power, backed by BlackRock’s Climate Infrastructure business, stands out as a prominent solar developer and operator in Taiwan. David Giordano, BlackRock’s Global Head of Climate Infrastructure, emphasized the firm’s leading position in the market.
While Google and BlackRock have not disclosed the exact size of the equity stake in New Green Power, Corio noted that the investment is anticipated to facilitate the equity and debt financing required for the development of New Green Power’s 1 gigawatt (GW) pipeline. This pipeline is part of Taiwan’s broader goal of achieving 20 GW of solar capacity by 2025 and potentially scaling up to 80 GW by 2050.
This partnership is not just about meeting Google’s internal energy needs. Corio explained that the renewable energy procured from New Green Power would also be extended to Google’s suppliers and manufacturers in the region. This initiative is crucial for addressing Google’s Scope 3 emissions, which encompass indirect emissions throughout its value chain.
Scope 3 emissions are a significant focus for many companies aiming to achieve comprehensive carbon neutrality. By offering renewable energy options to its suppliers, Google can help lower these emissions, creating a ripple effect throughout its supply chain. This collaborative approach underscores the company’s commitment to sustainability and its recognition of the interconnected nature of modern business operations.
The investment in New Green Power represents a strategic step for Google as it continues to expand its renewable energy portfolio and work towards its ambitious sustainability goals. By fostering the development of renewable energy infrastructure in regions like Taiwan, Google not only supports its own operational needs but also contributes to broader efforts to combat climate change. This move aligns with global trends pushing for more significant investments in green energy and reinforces Google’s role as a leader in the tech industry’s transition to sustainable practices.
In conclusion, Google’s acquisition of a stake in Taiwan’s New Green Power is a significant milestone in its journey towards carbon-free operations. This investment not only supports the growth of renewable energy in a key region but also helps reduce emissions across its value chain. As the company continues to expand its data-processing capabilities, this commitment to sustainability will be crucial in balancing growth with environmental responsibility.
