Microsoft Celebrates 100% Renewable Electricity Milestone

Microsoft has confirmed that it has successfully matched 100% of its annual global electricity consumption with renewable energy, achieving a target first set in 2020. The commitment formed part of the company’s wider ambition to become carbon negative by 2030, a pledge that positioned the technology giant among the most ambitious corporate climate actors globally.

The announcement, confirmed by Chief Sustainability Officer Melanie Nakagawa on 18 February 2026, represents five years of rapid expansion in renewable procurement. Yet while the headline figure is striking, the real story lies in how Microsoft achieved it, and what comes next.

From Pledge to Procurement

When Microsoft first made the commitment, it was clear that traditional certificate based accounting would not be sufficient. Instead of relying heavily on short term renewable energy certificates purchased on spot markets, a practice often criticised for weak additionality, the company prioritised long term Power Purchase Agreements, PPAs. These agreements directly finance new renewable energy projects and provide developers with revenue certainty over extended periods.

According to Microsoft’s official sustainability update, more than 90% of the renewable electricity used to meet its 2025 target came through PPAs or similar long term mechanisms, primarily tied to new build wind and solar projects. The remaining portion was secured through utility green tariffs and supplier backed guarantees of origin. However, Microsoft has been explicit in excluding short term spot certificates from its accounting framework in order to ensure that its procurement supports genuine capacity expansion rather than paper offsets.

You can read Microsoft’s announcement here
https://blogs.microsoft.com/on-the-issues/2026/02/18/renewable-energy-100-percent-milestone/

Since 2020, Microsoft has contracted approximately 40 gigawatts of renewable energy capacity across 26 countries. To put that in context, that volume of generation would be enough to power roughly 10 million US homes. Nineteen gigawatts of that capacity are already online, with the remainder expected to come into operation over the next five years.

The scale is significant. Corporate renewable procurement has become one of the fastest growing drivers of global clean energy deployment. The International Energy Agency, IEA, has repeatedly highlighted the growing role of corporate PPAs in accelerating renewable build out, particularly in advanced economies.
https://www.iea.org/reports/renewables-2025

The AI Paradox, Clean Energy Amid Rising Demand

While Microsoft has reached 100% annual matching, its total electricity consumption has grown sharply. Between 2020 and 2025, the company reported a 168% increase in energy use. This surge is largely attributable to the rapid expansion of cloud computing and artificial intelligence infrastructure.

AI workloads require immense computational capacity, driving demand for hyperscale data centres that operate continuously. The IEA has warned that global data centre electricity demand could more than double by 2030 under accelerated AI growth scenarios.
https://www.iea.org/reports/electricity-2025

This creates a paradox. Even as Microsoft procures unprecedented volumes of renewable energy, its overall energy footprint continues to expand. Matching consumption annually is a meaningful step, but it does not eliminate fossil fuel reliance in real time. Electricity grids remain mixed systems, and renewable generation is variable by nature.

The Shift Toward 24/7 Carbon Free Energy

Recognising these limitations, Microsoft has begun moving toward what is known as 24/7 carbon free energy procurement. Rather than balancing consumption annually, the 24/7 model seeks to match electricity use with carbon free generation on an hourly basis within the same regional grid.

This approach addresses a core criticism of traditional renewable accounting, that annual matching can mask periods when consumption is effectively powered by fossil fuels. By verifying clean energy sourcing hour by hour, companies can increase transparency and strengthen decarbonisation integrity.

Google has been one of the pioneers of the 24/7 carbon free energy framework and publishes annual progress scorecards tracking hourly performance.
https://www.google.com/about/datacenters/cleanenergy/

Microsoft has not yet committed to a specific deadline for achieving full hourly matching, but it has indicated that verification standards and transparency will continue to evolve in that direction.

Beyond Wind and Solar, Nuclear and Grid Investment

Another defining feature of Microsoft’s strategy is its willingness to support a broader portfolio of carbon free technologies. In addition to wind and solar PPAs, the company has announced partnerships to restart an 835MW nuclear plant in the United States and to support development of a 50MW fusion facility.

Nuclear power is increasingly being reconsidered as a firm, dispatchable, carbon free energy source capable of stabilising grids with high renewable penetration. The IEA recognises nuclear’s role in clean energy systems, particularly in maintaining reliability during periods of low wind and solar output.
https://www.iea.org/reports/nuclear-power-in-a-clean-energy-system

Microsoft has also highlighted the importance of grid infrastructure investment. Transmission constraints and interconnection delays are currently among the most significant bottlenecks to renewable deployment worldwide. Without modernised grids and storage integration, renewable capacity cannot be fully utilised.
https://www.iea.org/reports/electricity-grids-and-secure-energy-transitions

A Milestone, Not a Finish Line

Reaching 100% renewable electricity matching at Microsoft’s scale is undeniably a major corporate achievement. The company’s approach, prioritising long term PPAs, avoiding short term certificate arbitrage, and investing across multiple technologies, signals structural engagement with energy markets rather than superficial compliance.

Yet the milestone also underscores the scale of the challenge ahead. AI driven energy demand continues to grow. Scope 3 emissions embedded in supply chains and hardware manufacturing remain substantial. And real time decarbonisation of electricity systems requires deeper transformation than annual accounting metrics can capture.

The coming years will test whether Microsoft, and the wider technology sector, can move from annual renewable matching to fully hourly, regionally aligned carbon free energy systems. If successful, this would represent not just a corporate sustainability achievement, but a meaningful shift in how global electricity markets operate.

For now, Microsoft has delivered on its 2025 pledge. The next chapter, however, may prove far more complex.

References and Further Reading

Microsoft Sustainability Overview
https://www.microsoft.com/en-us/sustainability

Microsoft Renewable Electricity Milestone Announcement
https://blogs.microsoft.com/on-the-issues/2026/02/18/renewable-energy-100-percent-milestone/

International Energy Agency, Renewables Market Report
https://www.iea.org/reports/renewables-2025

International Energy Agency, Electricity 2025
https://www.iea.org/reports/electricity-2025

International Energy Agency, Nuclear in Clean Energy Systems
https://www.iea.org/reports/nuclear-power-in-a-clean-energy-system

Google 24/7 Carbon Free Energy Strategy
https://www.google.com/about/datacenters/cleanenergy/