Microsoft’s 2-Year Journey to 285 MW of Wind Energy
Summary
Microsoft contracted for 285 MW of wind energy from two off-site projects, which were enabled by long-term off-take agreements. The company's data center energy group pursued these power purchase agreements (PPAs) to hedge against energy price fluctuations and reduce long-term costs, noting that powering a data center can cost twice as much as its construction. The process was supported by a corporate commitment to carbon neutrality established in 2012, which included an internal carbon fee and a "carbon neutral council." Microsoft accelerated its procurement timeline—completing the first deal in six months and the second in six weeks—by utilizing a dedicated centralized energy team, external partners, and explicit executive support.
Key insights
- Microsoft secured 285 MW of renewable power from two off-site wind energy projects, providing the long-term off-take agreements necessary for the projects' construction. This capacity is equivalent to the electricity needed to power 125,000 U.S. homes.
- The primary drivers for these contracts were cost reduction and the mitigation of operational exposure to future energy price increases. Microsoft noted that the lifetime cost of powering a data center can be up to twice the cost of the building's construction.
- Internal sustainability policies established in 2012, including a goal of carbon neutrality and the implementation of an internal carbon fee across business units, created the corporate culture and accountability necessary to support renewable energy procurement.
- Microsoft significantly reduced the typical one-to-two-year timeline for off-site renewable energy transactions, completing its first deal in six months and its second in six weeks. This efficiency was attributed to a dedicated centralized energy team with industry experience, the use of external partners, and explicit support from senior executives.
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} }
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