The burgeoning demand for artificial intelligence and cryptocurrencies is setting the stage for what could be a transformative period for the solar industry.
For over 10 years, SolarBank has been at the forefront of this movement, providing commercial, industrial, municipal, and community solar projects that are reshaping the energy landscape.
The company’s approach to developing solar energy projects covers every phase of the process, from permitting and design to engineering, component sourcing, construction, and long-term operation and maintenance. SolarBank’s vertically integrated model allows for seamless project execution, providing clients with end-to-end support that ensures efficiency and cost-effectiveness.
Building on this foundation, SolarBank recently unveiled its plans to extend its business model by adding data center services focused on AI and cryptocurrencies to its existing energy and storage portfolio. The company is now positioning itself to offer “turnkey” solutions for the rapidly growing, vertically integrated data center and AI sectors.
As the backbone of the digital economy — supporting AI, cryptocurrency, cloud services, and more — data centers have seen explosive growth in energy consumption.
In 2022 alone, global data centers used 4.9 gigawatts (GW) of power. By 2023, that number surged to 7.4 GW—a remarkable 55% increase in just one year.
This sharp uptick reflects the growing energy demands of AI and crypto mining, two of the most energy-intensive technologies ever created. To put this into perspective, the average data center consumes energy equivalent to that of 5,000 homes. Larger facilities can require as much power as 80,000 homes, the equivalent of a small city. In fact, when looking at the combined electricity usage of all data centers worldwide, the total surpasses the energy consumption of some entire countries, according to the International Energy Agency.
The data center market is on a trajectory of rapid expansion. By 2028, data generation will more than double from 2024 levels, intensifying the need for additional data centers and further driving up energy consumption. Wells Fargo forecasts that electricity usage for generative AI could increase 80.5 times by 2030, and Bitcoin mining alone could surpass the entire energy demand of data centers in the coming decade.
As the energy needs of the data center market continue to escalate, the demand for sustainable and efficient energy solutions is becoming more pressing. Solar energy has emerged as a powerful contender in this race, propelled by strong policy support and an impressive increase in new installations across the U.S.
A Growing Footprint in the Energy Sector
With over 100 solar plants under management and more than $300 million in financed projects to date, SolarBank has proven its expertise in scaling renewable solutions. In one standout project, the company completed a $41-million USD deal with Honeywell to build a 21-megawatt solar project in upstate New York. The project, once operational, will provide clean energy to 2,400 homes.
Additionally, SolarBank secured $25.8 million in debt financing from the Royal Bank of Canada to construct two battery energy storage projects in Ontario.
With over 32 MWh of operational assets and a pipeline of more than 1,256 MWh in development—forty times its current capacity—SolarBank is on track for significant growth. Add to that a planned strategic pivot into data centers, and SolarBank sits at the crossroads of two rapidly expanding industries: Solar energy and data infrastructure.
The company’s North American base gives it a competitive edge, as the region is expected to account for 35-40% of the global data center market. Even more compelling is the fact that experts predict 70% of new “hyperscale” data centers will integrate renewable energy sources by 2030.
SolarBank’s planned expansion into the data center space aligns it perfectly with the accelerating demand for both renewable energy and advanced digital technologies. By tapping into this intersection of AI, cryptocurrency, and green energy, SolarBank is uniquely poised to thrive in an increasingly data-driven world.
There are several risks associated with the development of any data center. SolarBank is expanding into the data center industry but it does not currently have any data center projects under development or that it has secured rights to. It is in discussions with various other parties regarding potential data center opportunities and will provide details in a future news release if an agreement to acquire or develop a data center is concluded. The development of any data center or solar project is subject to identification of a suitable project site, receipt of required permits, the availability of third-party financing arrangements for the Company and the risks associated with the construction of a data center or project. This report contains forward looking statements. Please refer to “Forward-Looking Statements” in SolarBank’s press release dated November 7, 2024 title “SolarBank Expands into the projected $395 Billion Data Center Market as Developer and Strategic Partner” for additional discussion of the assumptions and risk factors associated with the projects and statements made in this report.
To learn more about SolarBank Corporation and its growing portfolio of projects, please visit their website.
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SolarBank: Powering AI and Crypto Data Centers with Sustainable Energy Solutions