Alphabet’s (NASDAQ:GOOGL) Google is making significant progress toward its zero-carbon goals. The company has partnered with NV Energy, a utility owned by Berkshire Hathaway, to power its Nevada data centers with geothermal electricity.
Google aims to increase the carbon-free geothermal electricity supply from 3.5 megawatts to 115 megawatts over the next six years. NV Energy has signed a purchase agreement with advanced geothermal developer Fervo Energy to facilitate this deal, pending approval from state utility regulators.
Since becoming carbon-neutral in 2007, Google has been committed to achieving net-zero emissions across all its operations and value chain by 2030. The company plans to cut 50% of its combined Scope 1, 2, and 3 emissions by this deadline. To reach this goal, Google is investing in both nature-based and technology-based carbon removal solutions.
Google’s substantial investments in wind and solar energy are noteworthy, with 64% of its global operations powered by carbon-free energy sources. The transition to geothermal energy is a significant step forward, as it uses naturally occurring underground heat to produce renewable electricity, unlike solar and wind energy, which depend on weather conditions. This shift from fossil fuels to clean energy is expected to reduce costs in both the short and long term.
The technology sector is increasingly focusing on carbon-free initiatives. Companies like Amazon, Microsoft, and Lam Research are also taking steps to lower carbon footprints and reduce energy costs. Amazon, the largest corporate investor in renewable energy, aims to power its infrastructure with 100% renewable energy by 2025, having reached 85% in 2021. Microsoft is on track to become carbon-negative by 2030 and plans to eliminate all greenhouse gas emissions by 2050. Lam Research aims for carbon net-zero emissions by 2050 and to operate on 100% renewable energy by 2030.
In conclusion, environmental, social, and governance (ESG) factors are crucial for building a sustainable business. Investors now consider not only a company’s profitability but also its sustainability for the future.
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