Microsoft’s 2-Year Journey to 285 MW of Wind Energy
Summary
Microsoft contracted for 285 MW of wind energy via two off-site projects to hedge against energy price volatility and support its goal of carbon neutrality. By utilizing a dedicated energy team, external expertise, and executive support, the company reduced transaction timelines from the industry average of one to two years down to six months for the first deal and six weeks for the second.
Key insights
- Over a two-year period, Microsoft contracted for 285 MW of renewable power from two off-site wind energy projects. These projects are capable of generating enough electricity to power 125,000 U.S. homes and relied on Microsoft's long-term off-take agreement for their construction.
- Microsoft's data center energy group utilized renewable energy power purchase agreements (PPAs) to manage the high costs of powering data centers over their operating lifetimes, which can cost up to twice as much as the initial construction of the building. The goal was to reduce costs and limit operational exposure to future energy price increases.
- The company's path to renewable energy contracts was supported by a 2012 announcement to become carbon neutral by 2013. This was implemented through an internal carbon fee across all business units and the creation of a "carbon neutral council" to communicate with business unit leaders and drive accountability.
- Microsoft significantly accelerated the timeline for off-site renewable energy transactions, completing the first in six months and the second in six weeks, compared to the typical one to two years. This efficiency was attributed to three factors: a dedicated centralized energy team with industry experience, the use of external partners, and explicit support from senior executives to coordinate with legal and accounting departments.
Cite the original document
- APA
- RMI (2015). Microsoft’s 2-Year Journey to 285 MW of Wind Energy. https://rmi.org/resources/blog_2015_08_06_microsofts_two_year_journey_to_285_mega_watts_of_wind_energy/
- Chicago
- RMI. Microsoft’s 2-Year Journey to 285 MW of Wind Energy. 2015. https://rmi.org/resources/blog_2015_08_06_microsofts_two_year_journey_to_285_mega_watts_of_wind_energy/.
- Wikipedia
- {{cite report |author=RMI |title=Microsoft’s 2-Year Journey to 285 MW of Wind Energy |date=6 August 2015 |url=https://rmi.org/resources/blog_2015_08_06_microsofts_two_year_journey_to_285_mega_watts_of_wind_energy/ |access-date=17 August 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{rmi2015microsofts, author = {{RMI}}, title = {{Microsoft’s 2-Year Journey to 285 MW of Wind Energy}}, institution = {RMI}, year = {2015}, month = aug, url = {https://rmi.org/resources/blog_2015_08_06_microsofts_two_year_journey_to_285_mega_watts_of_wind_energy/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }
Full text
Collected · Record updated