Microsoft Expands Renewable Energy Portfolio with 100 MW Solar Deal in Japan
Microsoft has made its latest move into the renewable energy market by purchasing 100 megawatts of solar capacity from Japanese developer Shizen Energy. The agreement, announced late last week, covers four different solar developments, including one that is already operational and three under construction.
The deal will provide Microsoft with a 20-year supply of clean energy to power its growing compute needs in Japan. As part of the agreement, Microsoft will purchase output from the plants at a fixed rate, allowing the company to budget for its energy costs over the long term.
"We are committed to reducing our carbon footprint and operating sustainably," said a spokesperson for Microsoft. "This deal is an important step towards achieving that goal, and we look forward to continuing to work with Shizen Energy on future projects."
Microsoft's investment in renewable energy is part of a broader trend among tech companies to prioritize sustainability and reduce their reliance on fossil fuels. Solar power has become an increasingly attractive option for data center operators due to its speed and cost-effectiveness.
"Renewable energy is becoming more competitive with traditional forms of generation, and it's also becoming easier to integrate into existing infrastructure," said a spokesperson for Shizen Energy. "We're seeing a lot of interest from companies like Microsoft who are looking to reduce their environmental impact."
Microsoft already operates two data centers in Japan, and the company has announced plans to invest $2.9 billion in the country over the next year. The expansion is expected to create new jobs and drive economic growth.
The 100 MW solar deal is just the latest in a string of renewable energy agreements signed by Microsoft in recent months. Since the start of the year, the company has contracted more than 1 gigawatt of solar capacity.
Microsoft's commitment to sustainability has been recognized globally, with the company ranking among the top 10 most sustainable companies in the world according to a recent report by Corporate Knights.
The deal is expected to have a significant impact on Japan's renewable energy market, which has seen rapid growth in recent years. The country aims to generate 24% of its electricity from solar power by 2030.
As Microsoft continues to expand its operations in Japan, the company will likely remain at the forefront of the country's renewable energy sector. With this latest deal, Microsoft is solidifying its position as a leader in sustainable energy and reducing its carbon footprint in the process.
*Reporting by Techcrunch.*