Source: TechCrunch
Microsoft's 20-year commitment to Chevron-supplied natural gas power contradicts its climate pledges. The deal exposes a real constraint: the computational intensity of large language models requires baseload power that renewables cannot yet reliably provide. Major cloud providers now face a direct tradeoff between growth and climate targets. The contract normalizes long-term fossil fuel deals as standard AI infrastructure practice, likely encouraging other hyperscalers to follow suit and reducing pressure on utilities to accelerate renewable capacity.