Microsoft is significantly increasing its commitment to renewable energy in Japan through new agreements with Shizen Energy, adding 100 megawatts (MW) of clean energy capacity. These 20-year contracts involve three new solar power purchase agreements (PPAs) strategically located in the Kyushu and Chugoku regions of Japan. This expansion deepens the collaboration between Microsoft and Shizen Energy, which began with an initial partnership in 2023.
One of the solar facilities is already operational, while the remaining two are currently under construction and are expected to contribute clean electricity in the coming years. This initiative is a crucial part of Microsoft's broader environmental strategy, which includes achieving 100% renewable energy consumption by 2025 and becoming carbon-negative by 2030. Shizen Energy, established in 2011, has become a notable player in Japan's renewable energy sector, with a global portfolio of developed projects exceeding 1.2 gigawatts.
The Japanese renewable energy market is experiencing robust growth, with the nation aiming to increase the share of renewables in its energy mix to between 36% and 38% by 2030, a substantial rise from the current approximate 22% (or about 25.7% in 2023). These agreements highlight the vital role of long-term partnerships between multinational corporations and local developers in driving the global transition to net-zero emissions. Microsoft's global renewable energy efforts are considerable, having contracted 19 gigawatts of new renewable energy capacity across 16 countries in 2024 alone.