Microsoft Corporation has
Microsoft uses datacenters to operate their cloud services. These facilities require an ample amount of electricity to function and the usage levels are only growing as the service becomes more conventional. Microsoft’s goal is to attain a level of 44 percent use of renewables by the end of the year. This is simply another dimension of competition for tech companies promoting cloud services. Amazon web services (AWS) hopes to achieve a level of 40 percent reliance on renewables by the
Black Hills Corp. is one of the two companies entering the contract with Microsoft. The publically traded company disclosed on October 25th they would be offering a
Under Microsoft’s agreement with Black Hills, any surplus power can be stored in backup generators and later distributed to the grid at a discounted rate. In terms of their public image, this will benefit both firms. Corporate promotion of renewable energy is becoming routine for industry leaders. Governments often provide tax cuts to these companies for taking the initiative and aligning their interests with global efforts. Bloomberg
This can be chalked up as another victory for renewables as we slowly shift away from common power sources like coal and oil. Local Wyoming consumers will prefer this alternative, more eco-friendly source of power as opposed to power from the grid likely produced using power plants. On a larger scale, as we observe the nation moving away from fuel sources such as coal, crude oil, and natural gas, we can expect the price of these products to decline. Investors should write long-term futures in any of these sources as they are replaced. To hedge their bets, individuals should buy green ETFs, made up of environmentally friendly corporations.
By Michael McDonald of Oilprice.com
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