TOKYO — Microsoft Corp. has entered a new solar deal in Japan, purchasing 100 megawatts of capacity from local developer Shizen Energy to supply its growing data center operations with clean power.
Announced late last week, the 20 year agreement covers four solar projects across Japan one already operational and three under construction. The deal is part of Microsoft’s global effort to match its cloud and AI energy needs with renewable sources.
The Seattle based technology firm operates two data centers in Japan and plans to expand further as part of a $2.9 billion investment over the next year.
The new Microsoft solar deal in Japan supports its pledge to use 100% renewable energy by 2030 and become carbon negative by the same year.
Solar has become a key component of corporate energy strategies due to its low cost and fast installation timelines.
Projects typically take less than 18 months to complete, allowing companies to tap into clean energy even before full scale operations begin.
“Japan’s corporate renewable market is maturing fast,” said Ayako Tanaka, senior analyst at Japan Renewable Insights. “Deals like Microsoft’s provide long term stability for developers while helping corporations meet sustainability commitments.”
Experts say Microsoft’s move reflects a broader shift among multinational tech companies securing direct renewable power purchase agreements (PPAs). These deals hedge against fossil fuel volatility and demonstrate climate leadership.
“Microsoft and other cloud providers are setting the pace in clean energy adoption,” said Hiroshi Nakamura, an energy economist at the University of Tokyo. “Their demand for reliable electricity is massive, and renewables like solar offer cost-effective solutions.”
Since early 2025, Microsoft has signed contracts for more than 1 gigawatt of solar worldwide, underlining how the company is pairing its AI infrastructure growth with sustainability goals.
Solar power remains one of the world’s cheapest energy sources. According to the International Renewable Energy Agency (IRENA), the cost of utility scale solar has dropped nearly 89% since 2010.
In Japan, corporate PPAs are gaining traction as businesses seek alternatives to traditional utility supply. Shizen Energy, founded in 2011, has developed over 1.2 gigawatts of renewable projects across Asia and remains a major player in the region’s clean energy market.
The latest Microsoft solar deal in Japan adds to similar agreements the company has signed in India, Australia, and the United States, reinforcing its position as one of the world’s largest corporate buyers of renewable power.
Local officials have welcomed the new projects, highlighting both economic and environmental benefits.
“In our community, the solar plant will create local jobs and support small businesses,” said Masato Watanabe, a council member from Kumamoto Prefecture. “We’re proud to host part of Microsoft’s clean energy journey.”
Environmental advocates echoed the optimism. “When global companies commit to long term solar contracts, it strengthens Japan’s clean energy future,” said Naomi Fujita of the Japan Climate Alliance.
Japan has pledged carbon neutrality by 2050, and private sector deals are key to achieving that goal. The government is encouraging corporate PPAs to boost renewable energy generation, especially in rural regions with available land.
For Microsoft, the solar deal in Japan secures reliable green power for its expanding data centers, which are critical to its AI and cloud computing services.
As data demand grows, sustainable electricity supply will define competitiveness said Nakamura. “Companies leading this shift will set new industry standards.”
Shizen Energy plans to use the partnership as a springboard for future projects across Asia, citing rising corporate demand for clean power.
The Microsoft solar deal in Japan marks another milestone in the company’s global sustainability strategy and Japan’s clean energy evolution.
As Microsoft continues to expand its AI infrastructure, renewable partnerships like this one underline how digital growth and climate action can progress together.
With more deals expected, Japan’s renewable sector stands to benefit from corporate investment and long term energy stability.
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