Microsoft Secures Major Solar Power Deal in Singapore to Advance 2030 Carbon-Free Energy Goal

In a significant move towards its ambitious goal of achieving 100% carbon-free energy consumption by 2030, Microsoft has signed a landmark agreement to purchase all the solar power generated by a major project in Singapore. This deal, in collaboration with EDP Renewables, marks a critical step for the tech giant as it seeks to fully match its electricity consumption with zero-carbon energy purchases.

A Landmark Solar Initiative

The agreement with EDP Renewables, a Spanish renewable energy company, involves Microsoft buying 100% of the renewable energy exported to the grid from the SolarNova 8 project. This project is poised to be Singapore's largest solar initiative, with plans to install up to 200 megawatt-peak (MWp) of solar capacity. The installation will span over 1,000 public housing buildings and more than 100 government-owned structures, reinforcing Singapore's commitment to expanding its renewable energy footprint under the SolarNova program.

Launched in 2014, the SolarNova Programme is a government-led effort aimed at accelerating the deployment of solar photovoltaic (PV) systems across the city-state. By tapping into Singapore's abundant sunshine, the program aims to significantly boost the nation’s renewable energy capacity and contribute to a more sustainable future.

A Commitment to Renewable Energy and Decarbonization

“Building our renewable energy portfolio with EDPR ensures that we can continue to secure renewable energy supply to meet Microsoft’s ambitious renewable energy and decarbonization goals,” said Adrian Anderson, General Manager of Renewables and Carbon-Free Energy at Microsoft.

This deal is just one of many that Microsoft has pursued in its quest to reduce its carbon footprint. Earlier this year, the company signed a global framework agreement with Brookfield Asset Management to back renewable power projects potentially worth up to $10 billion. This agreement provides Microsoft with access to a new pipeline of renewable energy capacity, essential for supporting the growing demand for cloud services and the increasing power needs of its expansive data centers.

Tackling Emissions Amid an AI Boom

Microsoft's commitment to renewable energy comes at a crucial time, as the company faces a surge in emissions driven by its push into artificial intelligence (AI) and the massive build-out of data centers in the United States. Since 2020, Microsoft has reported a 30% increase in its carbon emissions, primarily due to the increased energy demands of its AI technologies and cloud computing services.

In response, Microsoft has not only focused on renewable energy but also invested in carbon removal solutions. In a recent move, the company signed a deal with Occidental Petroleum to purchase 500,000 tons of carbon removal credits from a carbon capture facility in Texas. This initiative is part of Microsoft's broader strategy to mitigate its environmental impact and support technologies that can remove carbon from the atmosphere.