Microsoft announced on Wednesday (18) that it will offset 100% of its annual global electricity consumption with renewable energy by 2025 and will continue to purchase enough clean energy to fully meet its demand.
The company, which has been increasing investments in AI (Artificial Intelligence), achieved this goal for the first time after contracting approximately 40 GW of renewable capacity, mainly through PPAs (power purchase agreements).
According to the company, PPAs accounted for more than 90% of renewable energy acquisitions, while agreements based on the electricity grid mix represented the remaining 10%.
Microsoft also highlighted that the 2025 target did not include the purchase of renewable energy credits from already operational projects, prioritizing direct supply contracts.
According to the company, approximately half of this capacity (around 19 GW) is already connected to the electricity grid, while the remainder is expected to come online over the next five years, encompassing projects in 26 countries.
Furthermore, the company confirmed its intention to invest US$50 billion by 2030 to expand AI infrastructure in countries of the so-called "Global South"—a term used to generally refer to developing or emerging nations, mainly in Latin America, Africa, and Asia.
Microsoft's goal is to become carbon negative by 2030.
Microsoft's initiative to invest in renewables is aligned with the company's broader climate strategy, which aims to become carbon negative by 2030. In other words, the company wants to remove more greenhouse gases from the atmosphere than it emits.
The commitment, originally announced in 2020, also includes the goal of eliminating all carbon emitted directly and indirectly by the company since its founding in 1975 by 2050.
To achieve these goals, Microsoft combines expanding the use of renewable energy with investments in energy efficiency, electrification of operations, carbon removal technologies, and initiatives aimed at reducing emissions in its supply chain.
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