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Tech giants are increasingly turning to AES, a Fortune 500 energy company, to help meet net-zero goals.

Why it matters: Tech giants alone could support a billion-dollar business when it comes to net-zero-focused enterprise contracts.

Driving the news: In its earnings call Friday, AES announced a deal with Amazon to provide 675 megawatts (MW) of renewable energy to the e-commerce behemoth.

The deal included a 450 MW allotment of solar power combined with 225 MW of 4-hour-duration battery energy storage.

AES will deliver the renewable energy in the California Independent System Operator (CAISO) market.

State of play: AES also supplies renewable energy to Microsoft and Google via long-term power purchase agreement contracts. The company declined to disclose the monetary value of the contracts to Axios.

AES supplies 500 MW to Google in the Pennsylvania, New Jersey and Maryland (PJM) combined market.

It supplies a combined 741 MW to Microsoft, with 576 MW in PJM and 165 MW in CAISO.

The contracts take into account the companies' focus on hourly outputs instead of annual net-zero targets, AES CEO Andrés Gluski tells Axios.

Context: All three tech giants have aggressive net-zero targets, but are unable to build entirely new renewable energy production facilities that are instrumental in reaching those targets.

Working with existing producers like AES is a time- and cost-efficient way to transition to renewable energy.

Gluski tells Axios that tech company contracts can often extend beyond the company's U.S. footprint. Both Google's and Microsoft's contracts have spurred deals in Chile, he says.

💭 Our thought bubble: As with other global trends, like remote work, tech companies are in a unique position to dictate how corporations work with renewable energy suppliers in the energy transition.

And that could be a boon for facilitators and producers like AES.

AES has become tech's renewables matchmaker

AES works with Microsoft, Google and now Amazon.

In this illustration, solar panels are designed to look like 100 dollar bills.

Renewable energy

Tech giants are increasingly turning to AES, a Fortune 500 energy company, to help meet net-zero goals.Why it matters: Tech giants alone could support a billion-dollar business when it comes to net-zero-focused enterprise contracts.

AES has become tech's renewables matchmaker

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