Report: As AI power seeks to rise, Microsoft weighs back on carbon-free energy pledge
Microsoft is considering lowering or reducing the pledge to comply with its use of electricity and carbon-free energy around the clock by 2030, according to Bloomberg.
As technology companies race to bring more power-hungry data centers online, their climate goals are becoming increasingly difficult to achieve. Microsoft has been a vocal leader in climate action, setting ambitious goals to roll out and sponsoring carbon-reduction technologies — but that momentum appears to be softening in many areas.
Last month, the New York Times reported that the Redmond, Wash.-based company is suspending its future purchases of carbon credits, although company leadership said the program is not over. Microsoft has been driving that industry, including startups that pull carbon from the air or capture it emitted by factories, environmentally-based solutions for storing or locking carbon in soil or rocks.
And after years of announcements celebrating new renewable projects, Bloomberg reported in March that Microsoft was in “exclusive discussions” with Chevron and Engine No.
The company stands by its sustainability goals.
“Microsoft remains committed to its corporate goals of being carbon negative, zero water, zero waste, and protecting the environment. In 2025, we met a milestone in this journey by matching 100% of our annual electricity consumption with renewable energy,” said Melanie Nakagawa, Microsoft’s chief sustainability officer, in an emailed statement.
Microsoft and cross-town rival Amazon have both reached a goal of matching their overall energy consumption by purchasing an equal amount of clean energy. But in 2021, Microsoft raised the bar by committing to matching renewable energy around the clock — a tough target to hit because sources like wind and solar aren’t always available.
The company even teamed up with Seattle startup LevelTen Energy, Google, and two clean energy companies in 2023 to create a marketplace for organizations pursuing all renewable energy 24/7.
Bloomberg, citing unnamed sources, reported that talks on a stricter energy purchase policy are ongoing, with no final decision reached.
Nakagawa did not specifically address what he intended in his statement, adding that Microsoft is constantly reviewing and adjusting its climate approach “as markets mature, policy conditions change, and the level of new solutions emerge.”
“Any adjustment we make is part of our behavior — not a change in our long-term ambition,” he said.
Those desires are getting harder and harder to achieve. Microsoft CFO Amy Hood said last month that capital spending – which mainly funds data centers and hardware – will exceed $40 billion in the current quarter, setting a new record. Total spending is expected to reach $190 billion this year.
Computer services are a major contributor to Microsoft’s increasing carbon footprint driven by their energy needs and the carbon-sensitive steel and concrete needed to build them. Microsoft’s carbon footprint has grown by 23.4% from 2020 to 2024, as the company aims to reach zero emissions by the end of the decade.
Despite those challenges, Microsoft is still signing clean energy agreements. It recently agreed to operate 1.2 gigawatts of solar and battery projects in Wisconsin with We Energies – about half the total generating capacity of Seattle City Light. Power is expected to come online in December 2028, a company spokesperson said.
