.svg)
Microsoft plans to invest $80 billion in AI data centers in 2025
The almost headlines
In case you missed
Massive AI Investments: Microsoft plans to invest $80 billion in FY 2025 for AI-enabled data centers, with over $35 billion dedicated to global infrastructure, including 14 countries in three years.
AI Skilling Expansion: Microsoft will train 2.5 million Americans in 2025 with AI skills via LinkedIn Learning, community colleges, and specialized programs like Minecraft Education for 1.4 million youth.
Competing Globally: U.S. AI must outpace China by leveraging partnerships (e.g., G42 in Kenya) and private capital (e.g., $100 billion AI fund with Blackrock/MGX) to secure global adoption.
Policy Focus: Strengthen AI leadership through federal R&D funding, pragmatic export controls, and initiatives to use AI in government for operational efficiency.
Economic Growth: AI is positioned as the next General-Purpose Technology, set to drive innovation, productivity, and job creation across sectors from manufacturing to agriculture.
California Resources Corporation approved the state’s first carbon capture and storage (CCS) project at the Elk Hills cryogenic gas plant in Kern County.
The project will capture and store 100,000 metric tons of CO2 annually, using Class VI well permits from the EPA for injection into the nearby 26R reservoir.
The 26R reservoir, a joint venture with Brookfield, has a total capacity of 38 million metric tons and can inject 1.46 million metric tons annually.
Expected to generate $85/metric ton through 45Q tax credits and additional credits via California’s LCFS program.
First CO2 injection is expected in late 2025, with a capital investment of $14-18 million and projected internal returns of 10%-30%.
This CCS project will reduce Elk Hills Power Plant emissions by 7% and represents a critical step in CRC’s carbon management strategy.
Supply Agreement: Long-term contract with a logistics provider to deliver renewable natural gas (RNG).
Annual Volume: 12 million gasoline gallon equivalent (GGE) across five fueling stations.
Timeline: Two stations operational this month; three more in 6–12 months.
Facility Milestone: Nicor Gas’ first RNG interconnection links Air Liquide’s Rockford plant to its delivery system, producing 1.3 million Metric MMBtu of RNG annually.
Environmental Impact: The RNG output can power 12,000 homes, reducing carbon emissions by capturing and purifying biogas from landfills.
Parent Company: Nicor Gas, a subsidiary of Southern Company Gas, serves 2.3 million customers in northern Illinois.
Loan Details: NextDecade's subsidiary, Rio Grande LNG Super Holdings, secured a $175M senior secured loan from General Atlantic Credit.
Company Focus: NextDecade is advancing its 27 MTPA LNG export facility and large-scale carbon capture projects, showcasing its sustainability goals.
EDF Renewables North America and Enbridge Inc. announced the operation of Fox Squirrel Solar, a 577 MWac/749 MWdc project in Madison County, Ohio.
The project features 1.4 million solar panels and 159 inverters, making it one of the largest solar developments east of the Mississippi River.
Supported 650 construction jobs and 1.5 million work hours, with teams installing 10,000 panels per day during the build.
Electricity produced will power Amazon facilities under long-term PPAs, contributing to Amazon's net-zero carbon goals.
EDF Renewables now operates over 35 GW of renewable energy projects in North America.
Shift in Focus: GFANZ will now prioritize mobilizing over $5 trillion annually for low-carbon growth and modernizing energy systems, addressing investment gaps critical for achieving net-zero goals.
Key Initiatives: Plans include advancing public-private partnerships, leveraging multilateral development banks, and supporting Just Energy Transition Partnerships in emerging markets.
Structural Changes: GFANZ will transition to an independent Principals Group, led by CEOs and financial leaders, to drive initiatives and overcome barriers in capital mobilization.
Progress to Date: GFANZ has already introduced global climate reporting standards, a transition planning framework adopted by 500+ financial institutions, and regulatory guidance across major economies.
Strategic Partnership: Yotta Energy partners with Upstart Power to integrate on-demand energy generation into its modular energy storage systems.
Target Market: Focus on small and medium commercial spaces, aiming to lower energy costs by up to 40% compared to traditional systems.
Technology Enhancement: Integration of Upgen NXG fuel cell generators enables continuous power during solar downtime, improving energy resilience.
Vision EMS: Yotta's platform optimizes real-time energy management, enhancing grid independence and reducing demand charges for businesses.
Deep Fission partners with Endeavour Energy for 5-7 cents/kWh nuclear power.
Plan: 2 GW from small modular reactors by 2029 for Endeavour’s data centers.
Deep Fission leverages 40+ patented inventions for safety and cost-efficiency.
Alliance focuses on decarbonizing electricity for energy-intensive industries.
Acquisition includes pipelines, fractionation facilities, and distribution systems.
Adds 885 miles of NGL pipelines connecting Permian production to Gulf Coast markets.
Capacity to grow from 225 MBD to 350 MBD with planned expansions.
Boosts integration with Phillips 66’s Sweeny Hub and export capabilities.
Acquisition Overview: Diversified Energy has acquired natural gas properties and facilities from Summit Natural Resources for $45 million, adding 12 MMcfepd of production and 65 Bcfe in PDP reserves.
Hess Earns Sustainability Kudos
Included in Dow Jones Sustainability Index North America for 15th year, ranking 8th in social responsibility.
Clay Bretches to retire in mid-2025, transition in progress.
Coterra and Halliburton Automate Hydraulic Fracturing
Coterra implemented Halliburton’s Octiv Auto Frac, achieving a 17% boost in stage efficiency.
Ashcor and Consumers Energy Tackle Coal Ash
Ashcor will repurpose millions of tons of coal ash from Michigan’s J.H. Campbell plant as a 30% portland cement replacement.
The project aligns with Consumers Energy's net-zero by 2025 goal and will commence operations by 2027.
Talos Energy Progresses CEO Search
Interim CEO Joseph Mills resigned; Talos expects to appoint a permanent CEO by Q1 2025.
ONEOK Announces New Leadership Appointments
Randy N. Lentz appointed EVP and COO, overseeing asset operations.
Sheridan C. Swords promoted to EVP and CCO, expanding oversight to Natural Gas Pipelines.
Williams Prices $1.5B in Senior Notes
$1B in 5.600% notes due 2035; $500M in 6.000% notes due 2055.
Check out the latest Sunya Stories podcast with JP Morgan’s Rama Variankaval.
Rama Variankaval is Global Head of Corporate Advisory & Sustainable Solutions at J.P. Morgan. This group combines the capabilities of Corporate Finance Advisory, Center for Carbon Transition, Sustainable Solutions, and Infrastructure Finance Advisory.
We talk energy transition, carbon reduction, and the impact of AI on energy.
This episode is audio-only and you can find it on Spotify or Apple Podcasts as well.
DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.
