renewable energy integration

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renewable energy integration

The datacenter industry is undergoing a massive energy transition, with hyperscale operators leading commitments to 100% renewable energy. Of 594 active datacenter projects analyzed, 149 (25.1%) have explicit renewable energy commitments, representing 49,071 MW (37.4%) of total capacity. This transformation is reshaping power markets, driving unprecedented renewable energy deployment, and establishing new standards for corporate sustainability.

overview

adoption rates

by project count

Overall Adoption: 25.1% of datacenter projects (149 of 594) have renewable energy commitments. This reflects a significant shift toward sustainability, though the majority of projects still lack explicit renewable commitments.

Capacity Weighted: Renewable adoption is significantly higher when weighted by capacity. 37.4% of total datacenter power capacity (49,071 of 131,072 MW) comes from projects with renewable commitments. This indicates that larger hyperscale projects are more likely to commit to renewable energy than smaller facilities.

regional variation

State Leaders (projects with 2+ datacenters)

  • Oregon: 15/15 projects (100%), 1,358 MW renewable
  • Iowa: 8/12 projects (67%), 300 MW renewable
  • Wyoming: 4/6 projects (67%), 3,000 MW renewable
  • South Carolina: 5/9 projects (56%), minimal capacity disclosed
  • New Mexico: 3/6 projects (50%), 1,290 MW renewable
  • Colorado: 4/8 projects (50%), 161 MW renewable
  • Washington: 8/18 projects (44%), 344 MW renewable
  • Wisconsin: 4/9 projects (44%), 4,800 MW renewable

Regional Patterns

  • Pacific Northwest leads with high renewable adoption (Oregon, Washington)
  • Upper Midwest strong performers (Iowa, Wisconsin)
  • Mountain West emerging (Wyoming, New Mexico, Colorado)
  • Texas Triangle and Southeast lag despite growth
  • California surprisingly low explicit commitments despite state mandates

gigawatt-scale renewable projects

data city texas

Location: Texas Capacity: 5,000 MW Status: Planned

Renewable Strategy

  • 100% on-site green energy 24/7 commitment
  • Initially natural gas, transitioning to green hydrogen
  • Hydrogen salt dome storage facility planned
  • First major datacenter hydrogen project in US
  • Demonstrates path to carbon-free computing at massive scale

delta gigasite (utah)

Location: Utah Capacity: 4,000 MW Status: Planned

Renewable Mix

  • Intermountain Power Project (IPP) access
  • On-site solar panels
  • Considering geothermal resources
  • Wind energy potential
  • Evaluating nuclear options
  • Natural gas (Kern River Pipeline) for reliability

cloverleaf infrastructure (wisconsin)

Location: Port Washington, Wisconsin Capacity: 3,500 MW Status: Planned

Renewable Focus

  • Founded by Brian Janous, former head of energy at Microsoft
  • Explicit focus on low-carbon electricity
  • Leveraging Wisconsin’s renewable resources
  • Strategic approach to clean energy procurement
  • Industry leadership in sustainable design

vermaland la osa (arizona)

Location: Eloy, Arizona Capacity: 3,000 MW Status: Planned

Hybrid Energy System

  • Solar, natural gas, battery storage, grid connectivity
  • Natural gas plant in first phase
  • Transition to solar as primary source
  • 3,300-acre site with solar potential
  • Grid-scale battery energy storage system (BESS)

amazon aws new carlisle (indiana)

Location: New Carlisle, Indiana Capacity: 2,250 MW Status: Under Construction

AWS Commitment

  • 100% renewable energy corporate goal
  • Part of AWS broader sustainability initiative
  • $121M investment in infrastructure improvements
  • Road, water, and sewer upgrades
  • Community investment alongside renewable commitment

meta richland parish (louisiana)

Location: Richland Parish, Louisiana Capacity: 2,000 MW Status: Under Construction

Renewable Partnership

  • Meta pledges 100% clean and renewable energy matching
  • Working with Entergy to bring 1,500+ MW new renewables to grid
  • AI datacenter design with efficiency focus
  • Waterless cooling technology
  • Major renewable energy investment in Louisiana

quantum frederick (maryland)

Location: Frederick County, Maryland Capacity: 2,000 MW Status: Under Construction

Carbon Strategy

  • 600-acre nature reserve storing 2,800 tons of carbon annually
  • QLoop 40-mile fiber ring with 235,000 fiber strands
  • Renewable energy procurement
  • Carbon offset through on-site forestry
  • Integrated sustainability approach

crusoe/tallgrass (wyoming)

Location: Wyoming Capacity: 1,800 MW Status: Announced

Carbon Capture Focus

  • Powered by Wyoming natural gas with carbon capture technology
  • Proximity to Tallgrass CO2 sequestration hub
  • Long-term carbon storage solutions
  • Demonstrates carbon capture at datacenter scale
  • Natural gas bridge to carbon-neutral operations

solar energy integration

utility-scale solar partnerships

Google Mesa Data Center (Arizona)

  • Air-cooled technology reducing water consumption
  • Access to Arizona’s abundant solar resources
  • Google’s first physical presence in Arizona
  • Part of Google’s 24/7 carbon-free energy goals

Meta Mesa Data Center (Arizona)

  • Multiple buildings in ‘H’ configuration
  • Access to utility-scale solar via Arizona Public Service
  • Corporate renewable energy matching
  • Supporting Arizona solar development

Microsoft West US 3 (Arizona)

  • Adiabatic cooling: zero water when below 85°F
  • Leveraging abundant Phoenix-area sunshine
  • Azure region supporting renewable energy growth
  • 763 FTE projected by end 2026

on-site solar deployment

Zenith Volts Roswell (New Mexico)

  • 1,250 MW datacenter capacity
  • On-site solar generation
  • Modular solar-thermal hybrid systems
  • 250-acre battery energy storage system (BESS)
  • Demonstrates integrated solar-datacenter design

fifteenfortyseven Chester County (Pennsylvania)

  • 450 MW hyperscale campus
  • Rooftop solar: 7 MW capacity, scalable to 25 MW
  • Carbon-free power access by 2025-2026
  • Reforestation project with 4,000 new trees
  • Comprehensive sustainability approach

solar power purchase agreements (ppas)

Google Kansas City (Missouri)

  • 400 MW datacenter capacity
  • 400 MW carbon-free energy from Beavertail Solar farm
  • PPA with Evergy, Ranger Power, and DESRI
  • Solar farm in former coal community
  • Economic development and renewable energy combined

Google Mayes County (Oklahoma)

  • 372 MW Mayes County solar portfolio
  • Located within one mile of datacenter
  • PPA with Lee Energy Solar
  • Expected operations by end of 2025
  • Co-location of generation and load

wind energy partnerships

meta kansas city (missouri)

Golden Plains Technology Park

  • 1,000,000 sq ft facility
  • 750 MW capacity
  • Net-zero carbon emissions commitment
  • 430 MW renewable energy from first utility-scale renewable in Missouri
  • Likely wind energy from Missouri wind resources

meta dekalb (illinois)

Wind Energy Investment

  • 200 MW datacenter capacity
  • Invested in two Illinois wind energy projects
  • 295 MW of renewable energy added to local grid
  • Used AI-developed low-carbon concrete (40% lower emissions)
  • Comprehensive sustainability approach

iowa wind resources

Strong Wind State

  • Iowa leads in wind energy percentage (over 60% of electricity)
  • Multiple datacenter projects leveraging wind
  • QTS Cedar Rapids: water-free cooling plus wind energy
  • Google Council Bluffs: long-standing wind partnerships
  • Meta Altoona: renewable energy matching

nuclear energy access

amazon talen energy (pennsylvania)

Salem Township Nuclear Deal

  • 960 MW datacenter capacity
  • Draws electricity from Susquehanna Steam Electric Station
  • Nuclear power plant direct connection
  • Talen Energy sold 960 MW nuclear-powered datacenter campus
  • First major direct nuclear-to-datacenter deal in US
  • Controversial transaction under regulatory review

Significance

  • 24/7 carbon-free baseload power
  • No intermittency challenges
  • High capacity factor
  • Demonstrates nuclear role in datacenter power
  • Potential model for future developments

palo verde access (arizona)

Arizona Nuclear

  • Palo Verde Nuclear Generating Station: 3.9 GW capacity
  • Largest nuclear plant in United States
  • Carbon-free baseload available to Phoenix-area datacenters
  • Grid connection for 24/7 clean energy
  • Supplement to solar and storage

power purchase agreements (ppas)

corporate ppa structures

Traditional PPAs

  • Long-term contracts (10-25 years typical)
  • Fixed price or escalation structures
  • Offtake agreements supporting project financing
  • Renewable energy credits (RECs) bundled
  • Physical or financial settlement

Virtual PPAs (VPPAs)

  • Financial contracts without physical delivery
  • Datacenter buys RECs, cash settles energy price difference
  • Enables renewable support anywhere on grid
  • Common for large hyperscale operators
  • Flexible geographic matching

matching vs additionality

Renewable Energy Matching

  • Many operators commit to “match” consumption with renewables
  • May use existing renewable capacity (RECs purchased)
  • Does not necessarily add new renewable capacity
  • Time-matching vs volumetric matching debate
  • 100% renewable claim vs actual grid impact

Additionality

  • Contractual commitment that causes new renewable project
  • Directly results in renewable capacity addition
  • Higher environmental impact
  • Often required for corporate sustainability goals
  • Google, Meta, Microsoft emphasize additionality

24/7 carbon-free energy

Google’s Leadership

  • Pioneered 24/7 carbon-free energy (CFE) goal
  • Aims for carbon-free energy every hour, not just annual matching
  • Requires baseload carbon-free (nuclear, geothermal, hydro)
  • Battery storage for solar/wind intermittency
  • Advanced grid management and forecasting
  • Oklahoma pilot projects demonstrating feasibility

Industry Adoption

  • Microsoft exploring 24/7 CFE
  • Meta investigating hourly matching
  • Requires more sophisticated procurement
  • Higher cost than simple annual matching
  • Drives battery storage deployment

regional renewable availability

pacific northwest: hydro dominance

Oregon

  • 100% of datacenter projects have renewable commitments
  • Abundant hydroelectric power
  • Low electricity costs
  • Bonneville Power Administration (BPA) hydro
  • Wind energy supplement
  • Geothermal potential in central/eastern Oregon

Washington

  • 44% of projects with renewable commitments
  • Columbia River hydro dominance
  • Grand Coulee, Chief Joseph, other BPA dams
  • Wind energy in eastern Washington
  • Low-cost renewable electricity

upper midwest: wind leadership

Iowa

  • 67% renewable adoption in datacenter projects
  • Over 60% of state electricity from wind
  • Among highest wind percentages globally
  • Low electricity costs
  • Google, Meta, Microsoft all present
  • Rural economic development through wind

Wisconsin

  • 44% renewable adoption
  • Cloverleaf 3,500 MW project emphasizing low-carbon
  • Mix of wind, solar, and renewable natural gas
  • Utility partnerships for renewable procurement

mountain west: diverse resources

Wyoming

  • 67% renewable adoption
  • Wind resources excellent (eastern Wyoming)
  • Low population, high wind potential
  • Crusoe/Tallgrass carbon capture project
  • Related Digital air-cooled facility
  • Natural gas with carbon capture pathway

New Mexico

  • 50% renewable adoption
  • Outstanding solar irradiance
  • Wind potential in eastern plains
  • Zenith Volts Roswell solar + storage project
  • Lower development costs than neighbors

Colorado

  • 50% renewable adoption
  • Strong renewable portfolio standards
  • Xcel Energy wind leadership
  • Mountain solar resources
  • T5@Colorado Springs leveraging cooler climate

southwest: solar abundance

Arizona

  • 300+ days of sunshine annually
  • Massive utility-scale solar deployment
  • Palo Verde nuclear baseload
  • Google, Meta, Microsoft projects
  • Solar + storage increasingly economical
  • Vermaland La Osa hybrid system

Nevada

  • Geothermal resources (northern Nevada)
  • Solar in southern Nevada (Las Vegas area)
  • Reno area wind potential
  • Google and Apple Reno campuses
  • NV Energy renewable portfolio

California

  • Despite state mandates, lower explicit commitments in datacenter data
  • Extensive utility-scale solar
  • Offshore wind development beginning
  • Diablo Canyon nuclear (extended operations)
  • High renewable percentage in grid mix

texas: grid challenges and opportunities

ERCOT Grid

  • Isolated from other grids (minimal interconnections)
  • Rapid wind and solar growth
  • West Texas wind leadership
  • South Texas solar expansion
  • Grid reliability challenges
  • Battery storage deployment accelerating

Datacenter Adoption

  • Lower renewable commitment rate than expected
  • Data City Texas 5,000 MW green hydrogen project stands out
  • Natural gas dominance in many projects
  • Grid reliability concerns
  • Future potential for solar + storage

success stories

meta kansas city: first missouri utility-scale renewable

Project Details

  • 1,000,000 sq ft facility, 750 MW capacity
  • Net-zero carbon emissions commitment
  • 32% less energy than typical datacenter
  • 80% more water-efficient than industry standard
  • LEED Gold certification

Renewable Achievement

  • 430 MW renewable energy from first utility-scale renewable project in Missouri
  • Expanded from original 800Mto800M to 1B investment
  • Opened August 2025 with over 100 jobs
  • Demonstrates corporate catalyst for state renewable energy market
  • Economic development and clean energy combined

google oklahoma: co-located solar

Mayes County Campus

  • 372 MW Mayes County solar portfolio under construction
  • Located within one mile of datacenter
  • Expected to begin operations by end of 2025
  • PPA with Lee Energy Solar
  • Demonstrates co-location of generation and load

Significance

  • Minimizes transmission losses
  • Grid benefits from local generation
  • Economic development in rural Oklahoma
  • Model for future datacenter solar integration

oregon: 100% renewable adoption

Statewide Leadership

  • All 15 datacenter projects have renewable commitments
  • 1,358 MW renewable capacity
  • Meta Prineville campus with PUE 1.06
  • Google The Dalles campus
  • Abundant hydro, wind, and solar resources

Enabling Factors

  • Low-cost hydroelectric baseload
  • Renewable portfolio standards
  • Utility partnerships
  • Community support
  • Corporate sustainability alignment

challenges and barriers

intermittency

Solar and Wind Variability

  • Solar only generates during daylight
  • Wind generation varies with weather patterns
  • Seasonal variations in output
  • Datacenters require 24/7 power
  • Mismatch between generation and consumption

Solutions

  • Battery energy storage systems (BESS)
  • Grid-scale batteries increasingly economical
  • Forecasting and dispatch optimization
  • Demand response and flexible computing
  • Hybrid renewable + storage systems

grid constraints

Transmission Limitations

  • Renewable resources often remote (West Texas wind, eastern New Mexico solar)
  • Transmission infrastructure inadequate
  • Congestion and curtailment
  • Long lead times for transmission buildout
  • Cost allocation disputes

Interconnection Queues

  • Hundreds of gigawatts of renewable projects in queue
  • 3-5 year (or longer) interconnection timelines
  • Reform efforts underway (FERC Order 2023)
  • Datacenter timelines faster than renewable project development
  • Risk of renewable commitments delayed

cost considerations

Renewable Premium

  • Historically, renewables cost more than fossil fuels
  • Economics rapidly improving (solar and wind now cheapest in many markets)
  • Battery storage costs declining
  • 24/7 CFE still premium pricing
  • Corporate willingness to pay varies

PPA Structures

  • Long-term contracts lock in prices
  • Price risk if market prices decline
  • Financing implications
  • Balance sheet treatment
  • Complexity in procurement

community opposition

Local Resistance to Renewables

  • Solar farms face land use opposition
  • Wind turbines: visual impact, noise concerns
  • Transmission line siting challenges
  • Rural community impacts
  • Agricultural land conversion

Datacenter-Specific Opposition

  • Some projects canceled due to energy consumption concerns
  • Tucson Amazon AWS Project Blue: canceled over water and energy
  • Cumulus Missouri project: canceled over groundwater and energy costs
  • Community preference for renewable-powered facilities
  • Growing scrutiny of datacenter energy sourcing

future pathways

short-term (2025-2027)

Expected Developments

  • Continued PPA growth
  • More on-site solar deployments
  • Battery storage integration standard
  • Renewable percentage increasing
  • State mandates driving adoption

Technology

  • Solar + storage economics improving
  • Liquid cooling enabling higher efficiency
  • Advanced power management systems
  • Grid-interactive computing pilots
  • Demand response programs

medium-term (2027-2030)

Market Transformation

  • 50%+ of new datacenter capacity with renewable commitments
  • 24/7 CFE demonstrations proving feasibility
  • Advanced geothermal deployments
  • Small modular reactors (SMRs) potential
  • Hydrogen for backup power pilots

Policy Evolution

  • Federal tax credits extending (IRA)
  • State renewable mandates strengthening
  • Corporate reporting requirements
  • Scope 3 emissions scrutiny
  • Supply chain renewable requirements

long-term (2030+)

Vision

  • 100% renewable datacenter sector
  • 24/7 carbon-free energy standard
  • Nuclear renaissance (SMRs, advanced reactors)
  • Green hydrogen backup power
  • Grid-scale storage ubiquitous
  • Fusion energy potential (2035+)

Enabling Infrastructure

  • Transmission buildout complete
  • Smart grid with real-time optimization
  • Distributed energy resources integration
  • Vehicle-to-grid (V2G) for additional storage
  • Advanced forecasting and dispatch

technology innovations

advanced geothermal

Enhanced Geothermal Systems (EGS)

  • Not limited to volcanic areas
  • Drilling technology from oil and gas industry
  • 24/7 baseload carbon-free power
  • Fervo Energy and others developing
  • Potential game-changer for datacenter power

Datacenter Applications

  • Ideal for 24/7 CFE goals
  • No intermittency
  • Small footprint
  • Scalable
  • Complements solar and wind

small modular reactors (smrs)

Technology Status

  • NuScale first US design certified
  • Other designs in development
  • 50-300 MW capacity per module
  • Factory-built, site-assembled
  • Enhanced safety features

Datacenter Potential

  • Right-sized for large datacenter campus
  • On-site or adjacent generation
  • 24/7 carbon-free baseload
  • Decades of operation (60+ years)
  • Public acceptance challenge

green hydrogen

Data City Texas Pioneer

  • 5,000 MW datacenter with hydrogen commitment
  • Initially natural gas, transitioning to green hydrogen
  • Hydrogen salt dome storage facility
  • First major datacenter hydrogen project

Broader Potential

  • Hydrogen for backup power (fuel cells)
  • Replace diesel generators
  • Long-duration energy storage
  • Grid balancing
  • Cost and infrastructure barriers

grid-interactive computing

Concept

  • Datacenters adjust computing load based on renewable availability
  • Run batch jobs when solar/wind abundant
  • Reduce load during low renewable generation
  • Flatten demand curve
  • Maximize renewable utilization

Google Pilots

  • Shifting computing to times of renewable abundance
  • Machine learning optimizing dispatch
  • Carbon-aware load shifting
  • Early-stage but promising
  • Requires flexible computing workloads

policy and regulatory landscape

federal incentives

Investment Tax Credit (ITC)

  • 30% credit for solar projects
  • Energy storage eligible (standalone or paired)
  • Inflation Reduction Act (IRA) extended and enhanced
  • Supports datacenter solar deployment
  • Reduces PPA prices

Production Tax Credit (PTC)

  • Per-kWh credit for wind, geothermal, others
  • Technology-neutral clean energy credits
  • Supports new renewable capacity
  • Lowers PPA pricing for datacenters
  • 10-year credit period

state mandates

Renewable Portfolio Standards (RPS)

  • Many states require percentage of electricity from renewables
  • Timelines vary (2030, 2040, 2050)
  • Drives utility procurement
  • Benefits datacenter renewable access
  • Examples: California 100% by 2045, New Mexico 100% by 2045

Clean Energy Standards

  • Broader than RPS (includes nuclear, carbon capture)
  • Supports 24/7 CFE goals
  • Enables diverse pathways
  • Examples: Virginia, Washington

corporate reporting requirements

SEC Climate Disclosure Rules

  • Proposed rules requiring climate risk disclosure
  • Scope 1, 2, 3 emissions reporting
  • Drives corporate renewable commitments
  • Standardizes disclosure
  • Implementation timeline uncertain

CDP and TCFD

  • Voluntary disclosure frameworks
  • Many large corporations participate
  • Investor pressure for transparency
  • Renewable energy commitments prominent
  • Competitive differentiation

industry leadership

hyperscale operators

Google

  • Pioneered large-scale renewable PPAs
  • 24/7 carbon-free energy goal (leading industry)
  • Billions invested in renewable projects
  • Additionality emphasis
  • Transparency in reporting

Meta (Facebook)

  • 100% renewable energy achieved (annual matching)
  • Massive PPA portfolio
  • Supporting grid renewable development
  • Net-zero carbon commitment
  • Supply chain engagement

Microsoft

  • Carbon negative by 2030 goal
  • Removes historical emissions by 2050
  • 100% renewable by 2025 (achieved)
  • 24/7 CFE exploration
  • Brian Janous (former energy lead) now at Cloverleaf Infrastructure

Amazon Web Services (AWS)

  • 100% renewable energy goal
  • World’s largest corporate renewable energy buyer
  • Massive solar and wind portfolio
  • Path to net-zero carbon by 2040
  • Talen nuclear deal (Pennsylvania)

colocation providers

Aligned Data Centers

  • Delta3 waterless cooling technology
  • 100% renewable energy options
  • Patented efficient cooling
  • Hyperscale customers demanding renewables
  • Multiple campuses with renewable commitments

Digital Realty

  • Global renewable energy program
  • Customer-specific renewable procurement
  • Sustainability-linked financing
  • 100% renewable goal by 2030
  • Supply chain decarbonization

Equinix

  • 100% renewable energy achieved (2020)
  • Long-term renewable coverage goal
  • Global PPA portfolio
  • Climate-neutral operations
  • Customer collaboration on sustainability

economic impacts

renewable energy market transformation

Corporate Procurement

  • Datacenter operators among largest renewable energy buyers
  • Google, Amazon, Microsoft, Meta combined: tens of gigawatts
  • PPAs support project financing
  • Enables utility-scale development
  • Accelerates renewable deployment

Price Impacts

  • Large offtake agreements reduce risk
  • Improves project economics
  • Lowers renewable energy costs for all
  • Virtuous cycle: more deployment, lower costs, more deployment
  • Benefits extend beyond datacenter sector

local economic development

Rural Renewable Projects

  • Wind and solar farms often in rural areas
  • Economic development for agricultural communities
  • Lease payments to landowners
  • Tax revenue for local governments
  • Job creation during construction

Case Study: Google Kansas City

  • Beavertail Solar farm in former coal community
  • Economic transition from coal to renewables
  • 400 MW solar capacity
  • Datacenter offtake enables project
  • Combined economic and environmental benefits

grid modernization

Transmission Investment

  • Renewable development drives transmission buildout
  • Benefits all electricity consumers
  • Grid resilience improvements
  • Interconnection enhancements
  • Long-term infrastructure upgrade

Battery Storage Deployment

  • Datacenter renewable commitments drive storage
  • Grid-scale batteries provide ancillary services
  • Frequency regulation, voltage support
  • Arbitrage opportunities
  • Enables higher renewable penetration

conclusion

Renewable energy integration represents the datacenter industry’s most significant sustainability transformation. With 37.4% of capacity already committed to renewable energy and adoption accelerating, the sector is driving unprecedented clean energy deployment. Leaders like Data City Texas (5,000 MW green hydrogen), Delta Gigasite (4,000 MW multi-resource), and Cloverleaf Infrastructure (3,500 MW low-carbon focus) demonstrate gigawatt-scale commitments reshaping power markets.

Regional success stories highlight diverse pathways: Oregon’s 100% adoption leveraging hydroelectric resources, Iowa’s 67% adoption riding wind energy leadership, and Wyoming’s carbon capture innovations. Technology innovations—from enhanced geothermal and small modular reactors to green hydrogen and grid-interactive computing—promise to solve intermittency challenges and achieve true 24/7 carbon-free energy.

Challenges remain: grid constraints, interconnection delays, cost considerations, and community opposition. Yet the industry’s trajectory is clear. Hyperscale operators Google, Meta, Microsoft, and Amazon lead with multi-gigawatt PPA portfolios and additionality commitments. Federal incentives (ITC, PTC), state mandates, and corporate reporting requirements accelerate the transition. The economic impacts extend beyond datacenters: rural development, renewable market transformation, and grid modernization benefiting all electricity consumers.

As the datacenter sector continues its explosive growth, renewable energy integration will define competitive positioning, community acceptance, and long-term sustainability. The question is no longer whether datacenters will run on renewable energy, but how quickly the industry can achieve 24/7 carbon-free operations at scale.

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