Microsoft Signs Two Solar PPAs with Macquarie-Backed Blueleaf Energy in Japan

Microsoft has signed two long-term power purchase agreements (PPAs) with Blueleaf Energy, a Macquarie Asset Management portfolio company, to support the development of new solar electricity generation capacity in Japan. Announced on 28 October 2026, the agreements designate Microsoft as the sole offtaker for electricity generated by the two projects Blueleaf Energy is developing. Macquarie's Energy Markets and Customer Solutions team coordinated the transactions, which will support the expansion of renewable energy infrastructure in Japan as demand for electricity from artificial intelligence, cloud computing, and digital services continues to grow.

 

The agreements build on an established relationship between Macquarie and Microsoft, which has supported renewable energy developments across multiple markets since 2020. Existing projects associated with the partnership span the United Kingdom, Spain and India, representing a combined 540 megawatts (MW) of wind and solar capacity. The new Japanese agreements extend this collaboration into another major Asian electricity market. However, the companies have not disclosed the generation capacity, investment value, construction timetable or expected commissioning dates of the two projects in Japan.

 

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Long-term PPAs give renewable energy developers contracted electricity demand, improving revenue visibility and supporting project financing. For corporate buyers such as Microsoft, these arrangements can support renewable electricity procurement strategies while encouraging the development of additional generation capacity. Ed Northam, Global Head of MAM Green Investments, said, "We are pleased to work with Microsoft again, supporting its business goals through tailored clean energy solutions that help meet growing global demand for cost-efficient, low-carbon power that can be delivered quickly."

 

The Japanese agreements follow earlier collaboration between Blueleaf Energy and Microsoft on the Pachora Hybrid Power Project in India. Raghuram Natarajan, CEO of Blueleaf Energy, said, "Our collaboration with Microsoft is more than a commercial agreement; it is a shared blueprint for a decarbonized future." The company views the new transactions as an opportunity to expand its renewable energy development activities while building on its experience delivering clean power projects across Asian markets.

 

The partnership comes as electricity demand from AI and data centers becomes an increasingly important consideration for energy infrastructure investment. Macquarie cited International Energy Agency projections that AI-related electricity demand could reach 950 terawatt-hours (TWh) by 2030, compared with 485 TWh in 2025. Macquarie's Energy Markets and Customer Solutions team has supported more than 8 GW of renewable energy across 15 markets, including four renewable energy collaborations with Microsoft since 2020. While the latest agreements establish long-term purchasing arrangements for two planned solar developments, their eventual environmental contribution will depend on project delivery, electricity generation, and the applicable carbon accounting treatment.

 

Source: Macquarie Asset Management