By James Tsinidis, portfolio manager at Munro Partners from the Munro Climate Change Leaders Fund quarterly update:
“One of the biggest headlines during the quarter was the announcement between Microsoft and Constellation Energy relating to the significant deal involving the restart of Three Mile Island Unit 1 nuclear reactor. Under a 20-year power purchase agreement (PPA) with Constellation Energy, Microsoft will buy all the energy produced by the reactor to power its data centres with carbon-free electricity.
Microsoft’s endorsement gives further credibility to the climate credentials of nuclear power, shows these companies’ willingness to underwrite new clean energy capacity, and increases our conviction in our investments around the enablers of clean, energy efficient, data centres. It is estimated that data centres contribute more to greenhouse gas emissions than aviation, meaning that it is important to power them with low carbon energy and make them as energy efficient per unit of computing as possible.
It also shows how corporates, not just governments, drive the decarbonisation agenda.
We expect to hear further announcements in coming months regarding hyperscalers securing power to supply their data centres, which has been a core part of our investment thesis in Constellation Energy.”
Read more: https://www.gsfm.com.au/wp-content/uploads/2023/10/Munro_A4-Quarterly_MCCL_SEP24_FINAL.pdf
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