Microsoft has achieved a major milestone in its climate strategy, confirming that it has matched 100 percent of its annual global electricity consumption with renewable energy. The achievement marks a key step toward the company’s broader commitment to become carbon negative by 2030.

The target, first announced in 2020, aimed to align Microsoft’s global electricity use with renewable energy procurement by 2025. Reaching that goal reflects more than a decade of sustained investment in long-term power purchase agreements, market innovation and infrastructure partnerships.

From a Single PPA to a Global Portfolio

Microsoft’s clean energy journey began in 2013 with a 110 megawatt power purchase agreement in Texas. What started as a proof point for corporate renewable procurement has since grown into one of the world’s largest corporate clean energy portfolios.

Since announcing its carbon negative commitment in 2020, the company has contracted 40 gigawatts of new renewable energy capacity across 26 countries through more than 400 agreements with over 95 utilities and developers. Of that total, 19 gigawatts are already operational, with the remainder expected online within five years. The contracted capacity is estimated to generate enough electricity to power approximately 10 million U.S. homes.

The expansion of renewable supply has reduced Microsoft’s reported Scope 2 carbon dioxide emissions by an estimated 25 million tons and mobilized billions of dollars in private capital into energy systems where the company operates.

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Building Bankable and Scalable Procurement Models

Operating across diverse electricity markets requires adaptable commercial models. Microsoft has helped develop repeatable procurement frameworks suited to varying regulatory structures, balancing cost, timing and project scale across regions.

According to Bloomberg New Energy Finance, more than 200 global corporations have collectively purchased nearly 200 gigawatts of clean energy since 2008. Corporate buyers such as Microsoft have played a catalytic role in lowering transaction costs, broadening developer access to financing and normalizing structured procurement approaches that can be replicated across markets.

The company’s 10.5 gigawatt framework agreement with Brookfield signals long-term demand to 2030, providing developers with clearer financing pathways and enabling supply chain expansion.

Partnerships and Community Impact

Microsoft’s renewable portfolio is built on durable supplier relationships. The company has six energy partners with more than one gigawatt of contracted capacity each, and over 20 suppliers with multiple renewable projects under agreement.

Procurement has also been structured to deliver local benefits. Agreements such as a 500 megawatt power purchase agreement with Sol Systems and a 250 megawatt agreement with Volt Energy Utility have included job creation, workforce training, habitat restoration and support for community organizations. Distributed solar contracts totaling more than 1.5 gigawatts have brought clean power directly into local communities.

These projects combine emissions reduction with economic development, reinforcing the link between digital infrastructure expansion and regional resilience.

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Expanding Innovation Beyond Renewables

As electricity demand rises globally due to electrification, data centers and industrial growth, Microsoft is broadening its decarbonization strategy beyond wind and solar.

The company is supporting emerging technologies including nuclear energy, advanced grid infrastructure and carbon capture. It has partnered with Helion and Constellation Energy on a 50 megawatt fusion project in Washington state and is collaborating with Constellation on the restart of the 835 megawatt Crane Clean Energy Center in Pennsylvania.

Through its Climate Innovation Fund, Microsoft has allocated $806 million across 67 investments, with 38 percent directed toward energy systems such as carbon-free power, storage and fuel innovation.

Preparing for an Electrified Future

The International Energy Agency has described the current period as an “Age of Electricity,” driven by electric vehicles, cooling systems, data centers and heat pumps. As global electricity demand grows, the need for affordable, reliable and carbon-free power will intensify.

Microsoft’s milestone demonstrates how sustained corporate procurement can accelerate renewable deployment while reinforcing grid stability and economic development. As the company advances toward its 2030 carbon negative target, it is positioning renewable procurement as one pillar within a broader, technology-diverse decarbonization strategy.

The 100 percent renewable electricity milestone signals both measurable progress and an ongoing commitment to scale carbon-free solutions in partnership with utilities, developers and policymakers worldwide.

Source: https://blogs.microsoft.com

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