Microsoft has inked a new renewable energy deal in Japan, purchasing 100 megawatts (MW) of solar capacity from Japanese developer Shizen Energy, marking another major step in the tech giant’s clean energy expansion.
The agreement, announced late last week, spans four solar projects, one already operational and three still under construction, with a 20-year contract for output from the plants.
The deal aligns with Microsoft’s broader commitment to power its global operations with renewable energy, as it continues to scale data center capacity to meet rising AI and cloud computing demands. The company currently runs two data centers in Japan and plans to invest $2.9 billion in the country over the next year to boost its compute infrastructure.
Solar power has become increasingly popular among tech firms because of its low cost and fast deployment timeline, projects can typically be completed within 18 months, and energy generation can begin even before full completion.
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Since the start of the year, Microsoft has contracted over 1 gigawatt (GW) of solar capacity worldwide, underscoring its ongoing strategy to source affordable, sustainable power for its rapidly expanding operations.
