Recurrent Energy has achieved commercial operation at its 150MW Carwarp Energy park in Victoria, Australia, underpinned by a power purchase agreement (PPA) with Microsoft.

The asset connects to Australia’s National Electricity Market (NEM) via the 220kV Victorian transmission network and is equipped with tunnel oxide passivated contact (TOPCon) solar modules supplied by Recurrent Energy’s parent firm, Canadian Solar.

While Microsoft has not disclosed the specific end use for the renewable power from Carwarp, major cloud hyperscalers commonly deploy renewable PPAs to supply power for data centre assets. IEA data published earlier this year forecasts a sharp rise in data centre electricity demand, with consumption set to more than double across the 2020–2025 and 2025–2030 periods.

The project lands amid a transformative policy shift in Australia, where new federal rules will require data centre operators to become net renewable energy generators. Though Queensland and the Northern Territory have raised opposition to the regulation, the policy framework is designed to incentivise hyperscalers to co-locate renewable generation alongside new data centre builds.

Microsoft already has multiple data centre developments underway in Victoria, including the Woods Road and Cawley Road facilities. The firm also launched Victoria’s first datacentre academy at Victoria University’s Footscray Nicholson Campus this March.

“As demand for clean electricity grows, including from digital technologies and infrastructure, collaborations like this help strengthen Australia’s energy system and position the country to lead in a more sustainable and innovative future,” said Liz Fitch, head of corporate, external and legal affairs for Microsoft Australia and New Zealand.