Microsoft believes there is still significant room to expand wind and solar power to supply energy-hungry data centres, particularly in the Midwest wind corridor and the sunny southwest.

Bobby Hollis, Microsoft's Vice President of Energy, told Reuters at the CERAWeek energy conference that the company remains committed to renewables but acknowledges the challenges of intermittency in wind and solar power.

The rapid expansion of AI and cloud technology is driving record electricity demand, raising concerns about whether renewables can keep up or if gas-fired power will become a fallback.

Microsoft, which has pledged to be carbon-negative by 2030, is investing$80 billion in data centre expansion this year alone. Hollis said the company aims to maximise renewable energy but noted that natural gas may be necessary in some cases.

The central United States region, with strong and consistent winds, offers major potential for wind-powered data centres, while solar energy could expand further in the sun-rich southeast.

Microsoft has already procured more than 30 gigawatts of renewable energy worldwide and continues to push for greater renewable integration before resorting to fossil fuels.