Microsoft’s Renewable Push with Solar Deal in Japan
In a move that highlights its commitment to renewable energy, Microsoft has secured a 100 megawatt (MW) solar capacity deal with Shizen Energy, a Japanese renewable energy developer. This deal, announced on October 6, 2025, is part of Microsoft’s broader strategy to power its growing data centers with sustainable energy sources.
A Step Toward Sustainability
The agreement includes four solar projects, one of which is already operational, while the other three are currently under construction. This deal will ensure that Microsoft receives energy from these plants for the next 20 years, significantly reducing its carbon footprint. Solar energy has become a favored option for companies like Microsoft due to its affordability, scalability, and relatively fast installation timelines—projects typically take 18 months to complete, with power available even before full completion.
Expanding Data Center Capacity
The deal comes as Microsoft invests $2.9 billion to expand its operations in Japan, where it already operates two data centers. With the energy from the solar projects, Microsoft aims to meet the rising demand for its computing services while enhancing its sustainability efforts in line with its carbon-neutral goals.
Growing Solar Footprint
This agreement builds on Microsoft’s commitment to renewable energy, as it has already contracted more than 1 gigawatt of solar power capacity in 2025 alone. The company has been an active player in the renewable energy market, seeking to power its global data centers with green energy.
The Strategic Role of Solar
Solar power offers significant advantages for tech companies, particularly those operating large-scale data centers, which require vast amounts of energy. Solar is one of the most cost-effective new sources of energy generation, and its integration into data center operations helps ensure a more sustainable future for the tech industry.
This deal underscores Microsoft’s commitment to advancing sustainability by powering its data centers with renewable energy. As the company continues to expand its global operations, partnerships like this with Shizen Energy play a crucial role in helping Microsoft meet its ambitious sustainability targets while supporting its growing demand for computing power.
