Montana Attorney General Austin Knudsen, alongside 15 other Republican attorneys general, is scrutinizing renewable energy claims and power usage by four major tech giants. Allegations were made in a recent Montana Department of Justice press release against Amazon, Google, Meta, and Microsoft for potentially misleading power procurement practices. As these companies promote renewable energy adoption, they are accused of risking grid stability by elevating electricity demand.
Their claims of operating solely on renewable energy sources like wind and solar are under fire, with Knudsen suggesting possible violations of Montana’s Unfair Trade Practices and Consumer Protection Act. A response from the companies has not been made available, despite inquiries from Montana Free Press.
The attorneys general, in a detailed 15-page letter, criticize the companies’ use of renewable energy certificates (RECs), stating that these certificates often don’t guarantee actual renewable energy usage by the purchaser. The letter highlights the broader energy sector’s challenges, facing a significant rise in electricity demand due to investments in AI and data centers.
This scenario has led to concerns about fossil-fuel power plant retirements and potential blackouts. The tech firms have been requested to provide detailed renewable energy claims and REC purchase agreements, with responses due by October 27. Montana’s Office of Consumer Protection will handle these responses.
A surge in data center development is paralleling this scrutiny, with initiatives like NorthWestern Energy’s agreements with data companies pushing electricity demand to new heights. These developments align with efforts by President Donald Trump and Governor Greg Gianforte to advance American energy production.
Meanwhile, Montana’s utility and Quantica are part of Gianforte’s energy task force, aiming to tackle the current energy crisis and bolster reliable, affordable energy supplies. The group convened for the first time recently, focusing on increasing energy availability across the state.
In the ongoing debate over energy claims, the letter asserts that purchasing RECs doesn’t equate to operating on 100% renewable energy, especially if fossil-fuel-generated power is still in use.
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