Microsoft has announced it will continue to purchase enough renewable energy to match all its electricity consumption, having met this ambitious goal for the first time last year. This commitment is vital as tech giants accelerate capital expenditure on power-intensive data centers, driven by AI expansion.
The company confirmed it reached its 2025 target by securing 40 gigawatts of new renewable energy supply, primarily through long-term power purchase agreements. Nineteen gigawatts are already feeding into the power grid, with the remainder scheduled for delivery over the next five years across 26 countries.
"As we continue to grow, we want to maintain that 100 percent," stated Noelle Walsh, Microsoft's cloud operations chief. The company's Chief Sustainability Officer, Melanie Nakagawa, highlighted the increasing role of carbon-free electricity sources, such as a nuclear plant deal signed in 2024, in meeting the 100 percent matching target through 2030. By then, Microsoft aims to achieve carbon negativity.
Separately, Microsoft revealed plans to invest $50 billion by 2030 to expand AI infrastructure across the 'Global South', with a significant portion earmarked for cloud and AI data centers. In Ireland, a recent government decision to lift restrictions on data center grid connections is expected to facilitate Microsoft's expansion and meet substantial demand. The company anticipates proceeding with stalled data center proposals once new regulations requiring data centers to source at least 80 percent of their annual power from additional renewable sources are implemented.