Microsoft Invests in Solar to Offset Scope 3 Emissions

Microsoft has entered into an agreement to match its electricity usage with new renewable energy generation, as part of its efforts to tackle its rising Scope 3 emissions. This agreement involves the purchase of renewable energy credits (RECs) from Pivot over a 20-year period. Pivot will develop around 150 solar projects across 20 U.S. states, including Colorado, Maryland, Illinois, Delaware, Pennsylvania, and Ohio, with the first projects expected to be operational by the end of 2024. This marks Microsoft's first major distributed generation portfolio and adds to a series of recent clean energy deals, including a 5-year agreement with Brookfield to develop over 10.5 GW of new clean energy capacity in the U.S. and Europe, and over 800 MW of Power Purchase Agreements (PPAs) in Texas with Leeward Renewable Energy and RWE. The agreement also represents Pivot’s largest REC deal and involves community impact initiatives, such as increasing diversity among subcontractors, partnering with workforce development organizations to hire diverse local talent, collaborating with the Sustain Our Future Foundation to support community initiatives, and enhancing energy bill savings for low-income subscribers in community solar projects. Microsoft plans to more than halve its Scope 3 shipments by 2030 compared to 2020. However, the company predicted a 30 percent increase in Scope 3 shipments by 2023, due to the growth of data centers required for AI computing power. The new agreement is part of Microsoft's broader efforts to address these challenges.