Powering one of the world's largest online platforms comes with a significant responsibility to do so sustainably. For the past decade, Akamai has actively funded new wind and solar projects across the United States and Europe, a strategy central to our goal of reaching 100% renewable energy and net-zero emissions by 2030.
We have primarily been funding these projects with virtual power purchase agreements (VPPAs). These financial agreements are the cornerstone of our sustainability efforts and provide the necessary investment to add new clean power to the grids that support our global platform.
In simple terms, a VPPA is a long-term financial agreement, typically spanning 10 to 15 years, that provides price certainty for renewable energy.
Our strategy is to select projects in regions where the creation of new clean energy capacity can have the greatest positive impact on lowering the carbon intensity of the targeted local grid. This approach ensures that our investment supports the broader energy transition and contributes to a more diverse and resilient power system.
The market is changing
As we head into 2026, the renewable energy market is entering a new phase of maturity. For years, financial incentives acted as the scaffolding that helped the industry scale up. Now, that scaffolding is coming down, and the industry is getting ready to stand on its own. The success of new projects will no longer be about the financial structures of the past, but will be based on their fundamental value and efficiency.
For us, this evolution doesn't change the game — it confirms our long-term strategy. Our investments have always been grounded in price stability, energy security, and the simple business logic of renewables. We see this as a market shift, not as a hurdle. It’s an opportunity for real innovation to shine.
As other organizations navigate this new environment, we believe the most successful organizations will be those that remember the core principles of why this makes sense.
The strategy remains the same
So, if the landscape is changing, why does the strategy remain the same? It’s because the reasons for investing in clean energy are more compelling than ever, including:
It creates budget certainty in a volatile world
The fundamental math still works
It's a smart play for a high-demand future
It hedges against global risk
It strengthens local communities
It creates budget certainty in a volatile world
One of the most persistent challenges in financial planning is managing exposure to volatile commodity prices. We see a familiar example of this at the gas pump, where global events can cause prices to swing unpredictably.
A similar dynamic can affect a company's electricity costs. Because much of the grid is powered by natural gas, an organization's energy bill is directly exposed to that same commodity risk, creating uncertainty that complicates forecasting.
Now, imagine finding a gas station that lets you lock in today's price for the next 12 years. That's essentially what a VPPA does for a company's electricity budget. It’s a financial agreement that works like a seesaw, smoothing out those market bumps to create long-term cost certainty. Let’s say:
You agree to a fixed price (say, $30 per unit) with a new wind or solar farm.
The farm sells its power to the grid at the floating market price.
When the market price is high (e.g., $40), the project shares the $10 profit with you, which helps offset your own higher electricity bill.
When the market price is low (e.g., $20), you cover their $10 shortfall, but your own power bill is also cheaper, so it balances out.
No matter which way the market swings, your net energy cost is smoothed out, transforming a volatile expense into a more predictable line item.
The fundamental math still works
Even as the financial landscape evolves, the core value proposition of renewables holds strong. The U.S. Energy Information Administration (EIA) calculates the levelized cost of electricity (LCOE) to provide a clear, apples-to-apples cost comparison for new power plants entering service.
According to the EIA's latest 2025 cost analysis, the unsubsidized cost for new utility-scale solar is estimated to be as low as US$29 per megawatt-hour (MWh), with onshore wind at approximately US$35/MWh.
In comparison, a new, highly efficient natural gas combined-cycle plant has a projected cost starting at US$42/MWh. Crucially, that figure for natural gas assumes a stable, projected fuel cost — it does not account for the real-world price volatility that can dramatically increase operating expenses.
The reason for the renewable advantage is clear: Once a project is built, its fuel source is predictable. This provides a durable economic edge that is independent of temporary incentives.
It's a smart play for a high-demand future
Our world is becoming more connected and electrified every day. The incredible growth of the digital economy is fueling a significant increase in electricity demand, from the data centers that power our cloud to advancements in AI. This progress, combined with the shift toward electric cars and smart homes, highlights the growing importance of a modern and resilient energy grid.
As this demand increases, it can also lead to more unpredictable energy prices. A VPPA is a smart way for a business to navigate this future, allowing you to secure a predictable cost structure in a dynamic market.
It hedges against global risk
Think of a traditional power plant like a bakery that has to buy flour on the open market every day. The price of that flour (like natural gas or coal) can change dramatically based on global supply and demand, and those price swings are passed on to the bakery’s customers.
A solar or wind farm, on the other hand, is like a bakery that has its own wheat field right outside. Once the initial investment is made to plant the field (i.e., build the project), the main ingredient is delivered reliably and at no cost. This removes the single biggest source of price volatility, leading to predictable operational costs and a much more stable financial outlook.
It strengthens local communities
The benefits of these projects extend far beyond the balance sheet and into the communities in which they exist. From the moment ground is broken, clean energy projects create a ripple effect of economic opportunity. They support skilled jobs not just for the electricians and technicians on site, but for manufacturers and local suppliers who provide everything from steel to concrete.
For the local community, a new renewable energy project means a predictable, long-term revenue stream. The new tax base helps towns and counties invest in what matters most: better-funded schools, well-maintained roads, and essential public services.
Furthermore, for many landowners and family farms, lease payments provide a stable, drought-proof source of income, which helps to preserve their land for future generations. It's an investment that builds a stronger local economy from the ground up.
The way forward
Although the way energy projects are financed in the United States is evolving, the fundamental reasons for a company to invest in them haven't changed a bit. A VPPA is still one of the smartest tools a business can use to protect itself from unpredictable costs and build for the long term. It’s a direct path to greater stability in an uncertain world.
Ultimately, sustainability is about more than just a financial strategy. By investing in a smart mix of renewable assets, companies make a choice that creates a lasting value for the business, real opportunities for local communities, and a meaningful contribution to a stronger, cleaner energy future for all of us.
Learn more
For more information on Akamai’s renewable energy strategy, please visit akamai.com/sustainability.
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