Attorney General Knudsen launches investigation into big tech companies

HELENA – Montana Attorney General Austin Knudsen led a coalition of 16 attorneys general in launching an investigation into major tech companies regarding their misleading and deceptive claims they are solely powered by renewable energy.

In a letter sent Wednesday to Microsoft, Meta, Google, and Amazon executives, Attorney General Knudsen outlined his concerns with false claims the companies have made about their energy use and the impact it could have on the nation’s electric grid. The companies rely on purchased certificates to offset emissions, which threatens the integrity of the electrical grid as utility companies are shutting down necessary coal and natural gas plants.

These claims could be a violation of Montana’s Unfair Trade Practices and Consumer Protection Act if the organization is providing misleading and deceptive information to Montanans.

“As a result of big tech’s misleading energy use claims, coal and natural gas plants are being shut down, putting communities across the country at an increased risk of blackouts over the next few years. In Montana, reliable energy – like fossil fuels – are a vital part of our economy and keep us warm during harsh winters,” Attorney General Knudsen said. “Not only is our electric grid being threatened, but the companies could be in violation of Montana law. As attorney general, I am committed to getting answers.”

These companies are purchasing unbundled “renewable energy certificates” (RECs), which are tradeable credits showing renewable energy was produced and added to the grid. It allows these companies to claim they use renewable energy, even though they are consuming fossil fuels, especially at their data centers, which threatens the reliability of the electrical grid.

In the letter, Attorney General Knudsen states that the energy usage claims appear to be deceptive as purchasing unbundled REC’s does not reduce their own or any emissions. Major tech companies provide misleading information about their renewable energy consumption, if they rely on some fossil-fuel-generated baseload power, which produced emissions in the first place.

“When big tech companies claim to use 100% renewable energy, they pressure utilities to move away from fossil-fuel-generated baseload power to attract or retain big tech data center development,” Attorney General Knudsen wrote.

Attorneys general from Alabama, Alaska, Arkansas, Indiana, Iowa, Florida, Kansas, Missouri, Nebraska, North Dakota, Oklahoma, Pennsylvania, South Carolina, West Virginia, and Wyoming joined the letter.

To aid in their ongoing investigation, Attorney General Knudsen is demanding the tech companies answer questions regarding their energy usage by October 27.

Click here to read the letter