Tech Giant Google Invests in New Green Power
Google is making a big move towards its net-zero goals by partnering with BlackRock’s Climate Infrastructure business. The tech giant will invest in New Green Power, a Taiwan-based solar company owned by BlackRock. This partnership allows Google to procure up to 300 MW of solar power from New Green Power’s developments in Taiwan.
Key Points:
- Investment for Clean Energy: Google is investing in New Green Power, which is part of BlackRock’s portfolio. This investment will help build Taiwan’s clean energy capacity.
- Solar Power Procurement: Google will have the right to procure up to 300 MW of solar power from New Green Power’s solar assets in Taiwan.
- Support for Suppliers: The deal also gives Google the ability to extend this solar capacity to its suppliers in the region, supporting its goal to achieve net-zero emissions across its supply chain by 2030.
Insight into the Partnership
Google’s Green Ambitions
Google aims to run all its operations on carbon-free energy. This goal is ambitious and will require significant changes in energy systems and commercial efforts. Amanda Peterson Corio, Google’s head of data center energy, mentioned that achieving these goals will be “challenging.”
BlackRock’s Role in Taiwan’s Energy Transition
BlackRock fully acquired New Green Power in 2022 after an initial investment in 2020. The solar company has a development pipeline with a capacity of 1 GW. BlackRock sees this as a strategic investment to support Taiwan’s goal of reaching 20 GW of solar capacity by 2025 and 80 GW by 2050.
Highlights from BlackRock:
- Commitment to Low-Carbon Economy: David Giordano, BlackRock’s global head of climate infrastructure, emphasized the shared commitment with Google to drive the transition to a low-carbon economy.
- Support for Digital Services Growth: Giordano noted the importance of investing in infrastructure that supports the growth of digital services powered by AI and data-centric technologies.
Benefits for Google’s Operations
This partnership will help Google scale its Taiwan-based operations. Taiwan is Google’s largest non-U.S. hardware manufacturing hub. The company recently expanded its campus in Taiwan to focus on artificial intelligence, semiconductors, and 6G wireless connectivity.
Broader Implications for BlackRock
Strategic Investments in Infrastructure
BlackRock has identified infrastructure as a key area for its business. The company made a significant move by acquiring Global Infrastructure Partners for $12.5 billion in January. CEO Larry Fink highlighted the importance of decarbonization and energy security in this decision.
Regulatory Hurdles
The Federal Energy Regulatory Commission (FERC) sent a letter to BlackRock and Global Infrastructure Partners in June, identifying seven areas of concern regarding their proposed merger. The companies will need to address these issues to proceed with the deal.
Conclusion
This partnership between Google and BlackRock marks a significant step towards advancing clean energy infrastructure in Taiwan. By investing in New Green Power, Google is not only moving closer to its net-zero goals but also supporting the broader energy transition in the region. BlackRock, on the other hand, continues to strengthen its climate infrastructure portfolio, reinforcing its commitment to a sustainable future.
