Microsoft Inks First Renewable Energy Purchase Deal in Japan

(Bloomberg) -- Microsoft Corp. signed its first-ever long-term deal to procure renewable energy in Japan, as the tech giant rushes to meet ambitious green goals for its data-centers and operations.

Shizen Energy Inc. signed a 20-year agreement with Microsoft to provide 25 megawatts of solar power capacity from a project in Aichi prefecture, according to a statement from the Japanese renewables developer. The power purchase agreement — a scheme used to lock in an electricity supply at a negotiated rate — is part of Microsoft’s goal to become carbon negative by 2030.

Big technology firms such as Microsoft and Amazon.com Inc. have been making such deals as they face mounting pressure to clean up their energy consumption, with regulators and shareholders increasingly concerned about the vast quantities of electricity sucked up by large computing operations. 

Momentum is also picking up in Japan, where more firms are sourcing clean electricity even as the nation’s land constraints have hampered the rollout of renewables.

Shizen’s solar power plant is scheduled to begin operating this December. The Japanese company would also like to explore other power purchase agreements with Microsoft for other projects, according to a spokesperson. 

Microsoft is committed to realizing a sustainable society by working together with other companies like Shizen Energy, as well as governments around the world, a spokesperson for Microsoft Japan said.