Google has agreed to capital investments in New Green Power (NGP), a Taiwan-headquartered solar power developer fully acquired by BlackRock in August 2022.
The investment, exact size undisclosed, is part of an agreement reached by Google and BlackRock’s climate infrastructure business, which also includes NGP offering Google the rights to procure up to 300 megawatts of solar power from the developer’s pipeline of solar assets in Taiwan.
The clean energy capacity could also be extended to Google’s suppliers in the region, according to a July 1 press release.
A BlackRock spokesperson told FinanceAsia that Taiwan is “one of the most attractive energy transition markets in the world”, with authorities targeting 20 gigawatts of solar capacity by 2025, and up to 80 gigawatts by 2050.
The spokesperson added that strong fundamentals persist in energy transition investments in Taiwan, driven by growing energy demand and tight supply margins; strong regulatory support of renewables; and planned phase out of coal.
“Over the next year, we continue to see the best investment opportunities in solar, battery storage and electric vehicle charging infrastructure,” the spokesperson said.
The need for enhanced digital infrastructure, the press release underscored, was increasing the importance of renewable and efficient energy solutions.
Amanda Peterson Corio, global head of data centre energy at Google, said that the Google team is aiming to reach net-zero across operations and value chain, which needs to be supported by 24/7 carbon-free energy sources.
“The path to reach these goals is challenging, and requires both commercial efforts and broader energy systems change,” she said.
Demand for more powerful infrastructure, such as data centres, is growing globally due to the rise in remote work, video streaming and artificial intelligence (AI), according to BlackRock’s The New Infrastructure Blueprint.
Global annual spending on construction of data centres is anticipated to reach $49 billion by 2030, while the International Energy Agency predicts that the energy drawn from data centres, AI and other technologies could more than double to 1,000 terawatt-hours by 2026, which equals approximately the electricity consumption of Japan today.
“Technology companies and other corporates are looking for ways to secure long-term access to green electricity and are therefore entering power purchase agreements and strategic partnerships with renewable power developers in key markets,” the BlackRock spokesperson explained.
David Giordano, global head of climate infrastructure at BlackRock, commented in the press release: “As we witness growth in demand for digital services, powered by AI and data-centric technologies, it becomes imperative to invest in the infrastructure that not only supports this growth but also aligns with our strategy to invest in clean energy.”
Average annual investment in the global energy system is predicted to rise from today’s roughly $2 trillion to $4.5 trillion a year by the 2040s, according to the BlackRock Investment Institute Transition Scenario.
