Microsoft is expanding rapidly in artificial intelligence and cloud computing. At the same time, it is increasing its demand for electricity. However, instead of slowing down its climate goals, the company is pushing forward with a strong clean energy commitment. It has already reached a major milestone, and now it has promised to keep buying enough renewable energy to match all of its electricity needs as it grows.
Microsoft Achieves 100% Renewable Electricity Matching
Microsoft has officially reached its goal of matching 100% of its electricity consumption with renewable energy. The company confirmed that it met its 2025 target and now plans to maintain that level going forward.
To achieve this, Microsoft contracted 40 gigawatts of new renewable energy supply. A gigawatt is a very large amount of power. In simple terms, 40 gigawatts can power millions of homes. The company secured most of this energy through power purchase agreements, also known as PPAs.
Under these long-term agreements, Microsoft commits to buying electricity from renewable energy projects such as wind and solar farms. Because of these contracts, energy providers can confidently build new clean energy projects. As a result, Microsoft directly supports the expansion of renewable infrastructure.
So far, 19 gigawatts of the contracted renewable energy have already started supplying power to the grid. Meanwhile, the remaining capacity will come online over the next five years. These projects span 26 countries, which shows the global scale of Microsoft’s clean energy operations.
In simple terms, Microsoft now matches every unit of electricity it uses with an equal amount of renewable electricity added to the grid. Even as its energy demand increases, the company has pledged to maintain this 100% matching commitment.
Expanding Carbon-Free Power, Including Nuclear Energy
As Microsoft grows its data center network, it also broadens its clean energy mix. While wind and solar remain key sources, the company is increasingly adding carbon-free electricity to its portfolio.
Carbon-free electricity does not release carbon dioxide when generating power. Nuclear energy falls into this category. In 2024, Microsoft signed a deal with Constellation Energy to restart a nuclear plant in Pennsylvania. Through this agreement, the company supports the return of a carbon-free power source to the grid.
US confirms $36 billion Japan investment tranche under tariff-linked trade agreement
By adding nuclear energy to its clean energy strategy, Microsoft strengthens its ability to maintain 100% electricity matching through 2030. At the same time, it aligns this effort with its larger environmental target. The company aims to become carbon negative by 2030. This means it plans to remove more carbon from the atmosphere than it produces.
Importantly, Microsoft connects its energy strategy directly to its business expansion. As it builds more AI-powered services and cloud infrastructure, electricity demand naturally rises. Therefore, the company continues to secure renewable and carbon-free energy to prevent emissions from increasing alongside growth.
Rather than choosing between expansion and sustainability, Microsoft is actively pursuing both. It is scaling up AI while also scaling up clean energy procurement.
$50 Billion AI Investment and Rising Data Center Demand
At the same time, Microsoft is accelerating its global AI expansion. The company expects to invest $50 billion by 2030 to expand AI across countries in the Global South. Most of this funding will support cloud and AI data centers.
Data centers house powerful servers that store data and run complex programs. However, these facilities consume enormous amounts of electricity. As AI systems become more advanced, they require even more computing power. Consequently, energy demand continues to climb.
Ireland offers a clear example of this trend. In 2024, data centers accounted for 22% of the country’s total electricity consumption. This figure highlights how deeply technology infrastructure now shapes national energy systems.
Microsoft operates a major campus in West Dublin. The company built its first data center outside the United States in Ireland back in 2009. Since then, Ireland has become a key technology hub.
Recently, the Irish government lifted an effective moratorium on new data center grid connections. This move allows companies like Microsoft to connect additional facilities to the national power grid. As a result, Microsoft can now address strong pent-up demand in the country.
However, new regulations also introduce stricter requirements. Starting next month, new data centers must meet at least 80% of their annual electricity demand from additional renewable power. In other words, companies must actively support new renewable projects instead of relying only on existing capacity.
Because Microsoft has already secured significant renewable energy through long-term contracts, it expects to move forward with previously stalled plans for a new data center campus outside Dublin.
New Zealand and the Cook Islands clash over Russian-linked vessel registrations
Overall, the company’s strategy remains consistent. It is investing heavily in AI infrastructure. It is expanding data centers across multiple regions. At the same time, it is contracting renewable and carbon-free energy across 26 countries.
By securing 40 gigawatts of renewable energy, delivering 19 gigawatts to the grid so far, and planning for the remaining supply over the next five years, Microsoft has built one of the largest corporate clean energy portfolios in the world.
As AI-driven growth accelerates and data center electricity use rises, Microsoft continues to buy enough renewable and carbon-free energy to match all of its electricity needs.
