Microsoft has contracted 40 GW of renewable energy capacity worldwide, with 19 GW already online to match electricity use across its operations.
Long-term power purchase agreements are enabling new renewable infrastructure, community investment funds and grid upgrades.
Projects span solar, wind, hydro and repowered assets across North America, Europe, Australia and Brazil, reflecting regional policy and grid realities.
Microsoft announced it has met its 2025 renewable energy target, securing enough clean electricity to match 100% of power consumed by its datacenters, campuses and buildings worldwide.
The milestone rests on long-term power purchase agreements (PPAs), which enable developers to finance new renewable projects while providing Microsoft with predictable energy supply. The company has contracted 40 gigawatts of renewable energy capacity globally. Nineteen gigawatts are already delivering power to grids serving homes, businesses and industrial users.
These agreements typically span 10 to 15 years, giving developers revenue certainty while accelerating infrastructure deployment in regions facing surging electricity demand from digital services and electrification.
Dual-Use Solar And Community Investment In Illinois
In Eldorado, Illinois, rows of perennial grain grow beneath a 270-megawatt solar installation developed by Sol Systems. The dual-use project forms part of a broader agreement expected to add more than 500 megawatts across Illinois, Ohio and Texas, alongside a $50 million community investment fund over 20 years.
The initiative supports local schools, career training and agricultural innovation, including hydroponic greenhouses and renewable energy workforce programs.
“From the beginning, our goal with Microsoft was to show what’s possible when energy buyers and developers work hand-in-hand with local communities,” said Yuri Horwitz, chief executive of Sol Systems. “These projects are designed to produce power but, just as importantly, to create opportunity, trust and lasting value in the places where they’re built.”
The Eldorado site grows Kernza®, a deep-rooted perennial grain that improves soil health and stores carbon, while sheep grazing and pollinator habitats support biodiversity.
Hydropower Modernization Extends Grid Capacity
In West Virginia, Brookfield Renewable is modernizing the Hawk’s Nest hydroelectric facility, originally commissioned in 1936. The upgrade will allow the plant to deliver power to the local grid for the first time.
“With the benefit of our offtake agreement with Microsoft, we’ve made major investments over the last five years to ensure that an asset that’s been around for nearly 100 years will continue for the next 100 years,” said Stephen Gallagher, CEO of North American operations for Brookfield’s renewable group.
Brookfield’s portfolio tied to Microsoft includes more than 10.5 gigawatts of renewable capacity, alongside solar projects designed to preserve farmland and wildlife corridors. Developers continue to face multi-year grid interconnection delays, a structural constraint on energy transition timelines.
“All of us are struggling with the timelines it takes to connect to the grid,” Gallagher said.
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Brazil Wind Project Advances Workforce Inclusion
In Brazil’s northeast, the 154-megawatt Cajuina wind complex operated by Auren Energia supplies renewable power under a 2023 PPA. One of its wind farms is operated by an all-women team.
“As you can imagine, power generation, it’s mostly operated by males so it’s very different and something we are very proud of,” said Eduardo De Oliveira Diniz, director of trading and clients at Auren Energia.
The project has driven road upgrades, clean water access and school support for nearby communities while feeding electricity into Brazil’s national grid.
“Auren has a 100% renewable energy portfolio with a strategically complementary mix of sources between hydro, wind and solar generation,” Diniz added. “We really believe in the power of our portfolio.”
Australia Solar Expansion Supports Coal Transition
FRV Australia’s 300-megawatt Walla Walla solar facility in New South Wales provides renewable power under a 15-year agreement with Microsoft. The site generates enough electricity for more than 90,000 homes and supported 350 construction jobs.
“The Microsoft contract was the fundamental ingredient for making such a project a reality,” said Michael Steiner, chief business development officer at FRV Australia.
Australia faces the challenge of replacing 14 gigawatts of coal generation within a decade. Steiner emphasized early community engagement: “We need to create this trust and engagement from day one on every project that we do. If you don’t, you will not get anywhere, and your project probably will fail before you even start building.”
Repowering Wind Assets In France
In Fitou, southern France, ENGIE repowered a 22-year-old wind farm, doubling output while reusing existing land and grid connections. Sensors now slow turbines when birds are detected nearby.
“We enhanced our longstanding biodiversity and noise management measures with the latest technologies and an AI tool,” said Katrin Fuhrmann, managing director for ENGIE’s B-to-B activities in Central Europe.
Microsoft and ENGIE have enabled 26 renewable projects in France and seven in Germany totaling 416 megawatts online.
“Electricity consumption is increasing, and renewable production is increasing exponentially,” Fuhrmann said. Repowering accelerates clean power deployment while minimizing environmental impact. “It really is a win-win situation.”
Community Revenue And Landowner Stability In The U.S.
EDP Renewables North America is delivering 675 megawatts of solar and wind projects tied to Microsoft agreements. These installations are expected to power more than 150,000 U.S. homes while generating tax revenue and lease income for rural communities.
The Cattlemen Solar II project in Texas alone is projected to generate over $41 million for local governments and more than $50 million in landowner payments.
“As energy demand rises across the country, these agreements support investment in domestic energy infrastructure while delivering long-term value for customers, communities and the broader economy,” said Kelly Snyder, executive vice president of origination for EDPR NA.
What It Means For Energy Markets And ESG Strategy
Microsoft’s procurement strategy illustrates how corporate demand is reshaping electricity systems. Long-term PPAs provide financial certainty for developers, unlock financing, and accelerate grid decarbonization while delivering social and economic co-benefits.
As electricity demand climbs alongside AI infrastructure, electrification and industrial decarbonization, corporate buyers are increasingly acting as anchor customers for renewable capacity. The model aligns private capital with public climate goals, offering a pathway for scaling clean energy while supporting local economies and grid resilience worldwide.
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