The 15-year agreement will supply Microsoft's Virginia-based data centers with renewable energy to match their energy consumption
ARLINGTON, Va., Nov. 3, 2021 /PRNewswire/ -- The AES Corporation (NYSE:?AES) today?announced that it has signed a 15-year agreement with Microsoft (Nasdaq: MSFT) to support the company in achieving its 100/100/0 by 2030 goal. Microsoft, one of the world's largest purchasers of renewable energy, will use the around-the-clock renewable energy provided through this agreement to power its data centers located in Virginia. The structure of the agreement utilizes both existing renewable projects under a long-term contract to Microsoft, while also adding additional renewable resources in the region.
"By leveraging AES' capability and presence in the PJM market, we are able to both secure additional renewable supply in support of meeting our commitment to use 100% renewable energy by 2025, and also take a meaningful step toward having 100% of our electricity matched by zero-carbon resources all of the time in the region," said Brian Janous, General Manager Energy & Renewables at Microsoft. "We believe innovative commercial structures like this with AES and integrating new technologies will be key as we continue to move toward our 100/100/0 commitment."
"Microsoft is a leader in the energy transition with its commitment to being 100% powered by zero-carbon electricity by 2030. We're proud of the solution we co-created with Microsoft to help meet that commitment with the delivery of 24/7 zero-carbon electricity to its Virginia-based data centers," said Andrés Gluski, AES President and CEO. "Working together with leading corporations, we are setting new standards for decarbonizing their operations and the grid."
According to Virginia Economic Development Partnership, 70% of the world's internet traffic passes through data centers located in Virginia. Operating Microsoft's Virginia-based data centers on zero-carbon energy helps support a greener internet for users around the world.
AES will source the energy from a portfolio of 576 MW of contracted renewable assets, including wind, solar, as well as battery energy storage projects in PJM.
The AES Corporation (NYSE: AES) is a Fortune 500 global energy company accelerating the future of energy. Together with our many stakeholders, we're improving lives by delivering the greener, smarter energy solutions the world needs. Our diverse workforce is committed to continuous innovation and operational excellence, while partnering with our customers on their strategic energy transitions and continuing to meet their energy needs today. For more information, visit AES here.
Microsoft (Nasdaq "MSFT" @microsoft) enables digital transformation for the era of an intelligent cloud and an intelligent edge. Its mission is to empower every person and every organization on the planet to achieve more.
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This news release contains forward-looking statements within the meaning of the Securities Act of 1933 and of the Securities Exchange Act of 1934. Such forward-looking statements include, but are not limited to, those related to future earnings, growth and financial and operating performance. Forward-looking statements are not intended to be a guarantee of future results, but instead constitute AES' current expectations based on reasonable assumptions. Forecasted financial information is based on certain material assumptions. These assumptions include, but are not limited to, our expectations regarding the COVID-19 pandemic, accurate projections of future interest rates, commodity price and foreign currency pricing, continued normal levels of operating performance and electricity volume at our distribution companies and operational performance at our generation businesses consistent with historical levels, as well as the execution of PPAs, conversion of our backlog and growth investments at normalized investment levels and rates of return consistent with prior experience.
Actual results could differ materially from those projected in our forward-looking statements due to risks, uncertainties and other factors. Important factors that could affect actual results are discussed in AES' filings with the Securities and Exchange Commission (the "SEC"), including, but not limited to, the risks discussed under Item 1A: "Risk Factors" and Item 7: "Management's Discussion & Analysis" in AES' 2020 Annual Report on Form 10-K and in subsequent reports filed with the SEC. Readers are encouraged to read AES' filings to learn more about the risk factors associated with AES' business. AES undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Any Stockholder who desires a copy of the Company's 2020 Annual Report on Form 10-K filed February?25, 2021 with the SEC may obtain a copy (excluding Exhibits) without charge by addressing a request to the Office of the Corporate Secretary, The AES Corporation, 4300 Wilson Boulevard, Arlington, Virginia 22203. Exhibits also may be requested, but a charge equal to the reproduction cost thereof will be made. A copy of the Form 10-K may be obtained by visiting the Company's website at?www.aes.com.
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