Microsoft signs 12-year deal for 4.9 million tons of carbon removal

Microsoft has signed a contract to purchase 4.9 million metric tons of carbon removal credits from Vaulted Deep, a company that specializes in underground carbon storage.

The agreement will last 12 years, extending through 2038, and aims to offset the company’s increasing carbon emissions.

Vaulted Deep employs technology to inject solid waste, including treated sewage and paper sludge, into porous rocks deep underground.

This method prevents carbon dioxide from entering the atmosphere.

The company has removed over 18,000 metric tons of carbon dioxide to date.

🔗 Source: TechCrunch

🧠 Food for thought

1️⃣ The tech sector’s AI boom is creating an industry-wide emissions challenge

Microsoft’s emissions growth reflects a broader trend across the technology sector directly linked to artificial intelligence and cloud computing expansion.

According to a 2025 ITU report, major AI-focused companies have seen a 150% increase in operational emissions since 2020, with electricity consumption by data centers growing 12% annually from 2017 to 20231.

This growth far outpaces global electricity increases, with the digital sector now accounting for 2.1% of global electricity use and 0.8% of all energy-related emissions1.

This demonstrates how the AI revolution is creating tension between business growth and climate commitments across the entire tech industry, not just at Microsoft.

Despite efficiency improvements, total emissions continue rising because the scale of digital infrastructure deployment is outpacing per-unit efficiency gains.

2️⃣ Microsoft’s carbon management history shows systematic approach despite recent setbacks

Microsoft’s current emissions challenges come despite having one of the tech industry’s longest-standing climate programs, implemented well before their 2020 carbon negative pledge.

The company has been carbon neutral since 2012, maintaining this status through an internal carbon fee system that assigns monetary value to emissions and creates accountability within business units2.