Microsoft Corporation (NASDAQ:MSFT) has struck a deal with South Korean manufacturer Qcells for 12 gigawatts of solar panels.
The deal, which extends through 2032, is considered one of the largest of its kind, Reuters reported.
Qcells just opened a new $2.5 billion solar panel manufacturing facility in the US state of Georgia.
The manufacturer will produce modules as well as silicon ingots, wafers and cells.
For Microsoft, the agreement is a strategic move to reduce supply chain risks and support its goal of powering its operations with 100% renewable energy by 2025. The collaboration will also help Qcells establish a solar supply chain in the United States to compete with China.
The two companies initially agreed to a 2.5-gigawatt contract a year ago. Through this expanded agreement, Microsoft will now increase its total commitment to 12 GW, which is sufficient to power approximately 1.8 million homes, as per the companies' statement.
The deal comes at the US government tries to bolster domestic production of clean energy components.