Key Impact Points:
- Microsoft is pioneering hybrid wood-based data centers to lower carbon emissions by reducing steel and concrete use.
- Aiming to be carbon negative by 2030, Microsoft is investing in low-carbon technologies through its $1 billion Climate Innovation Fund.
- Cross-laminated timber (CLT) construction is projected to cut the carbon footprint of new Virginia data centers by up to 65% over conventional methods.
New Approach to Data Center Construction
Microsoft is testing a new way to construct data centers in northern Virginia using “superstrong ultra-lightweight wood“ in place of traditional steel and concrete. This innovation aims to lower the carbon footprint of its facilities, aligning with the company’s goal to be carbon negative by 2030.
Why Wood Matters for Sustainability
A mix of cross-laminated timber (CLT), steel, and concrete forms Microsoft’s hybrid model. This “fire-resistant prefabricated wood material” will replace significant portions of steel and concrete, reducing embodied carbon emissions by 35% to 65% compared to conventional methods.
“It’s an all-hands-on-deck task,” says Jim Hanna, head of sustainability for Microsoft’s datacenter engineering team, highlighting the company-wide push for decarbonization.
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Microsoft’s Multi-Faceted Strategy
In addition to new building materials, Microsoft has implemented low-carbon requirements for suppliers and invested in carbon-free energy and green construction innovations. CLT, for example, is an engineered wood material widely used in the EU and now entering the U.S. market, providing a low-carbon alternative to steel and concrete.
“A lot of our suppliers are on the same journey as we are,” says Richard Hage, head of global strategy for datacenter engineering at Microsoft.
Investing in Climate Solutions
Through its $1 billion Climate Innovation Fund, Microsoft is helping accelerate the market for low-carbon materials, including green steel and carbon-free energy solutions. “We’re trying to be the catalyst…that gets these early contracts done,” explains Brandon Middaugh, Climate Innovation Fund manager.
The fund has invested in transformative technologies, including CarbonCure for concrete and Boston Metal, which uses renewable energy in steel production. These innovations aim to reduce the carbon footprint across Microsoft’s operations and the broader tech industry supply chain.
Leveraging Market Power for Change
Microsoft’s size allows it to push these green innovations into mainstream use. By investing in sustainable solutions, Microsoft helps “ensure that our suppliers have the enabling technologies they need to develop the green solution,” as Middaugh noted, driving demand for low-carbon alternatives across industries.
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