Microsoft inks three 20-year solar PPAs with Shizen Energy in Japan

Microsoft Corp. has signed a new batch of renewable energy deals with Japan-based Shizen Energy Inc., the latest effort by a global technology company to secure clean electricity.

Microsoft Strengthens Clean Energy Commitments in Japan

According to Shizen Energy, the tech giant has entered into three new 20-year solar power purchase agreements (PPAs) with the Fukuoka-based firm. This development comes two years after Microsoft inked its first long-term renewable deal with Shizen. With the new agreements, Microsoft’s total renewable energy commitment with Shizen has now reached 100 megawatts.

Corporate PPAs Rise as Global Firms Race to Decarbonise

Big technology companies such as Microsoft and Amazon.com Inc. have been ramping up their renewable energy investments to cut emissions across supply chains. Corporate PPAs — long-term agreements between energy buyers and renewable developers — have become one of the most effective tools in this transition.

In fact, demand is rising rapidly across Asia-Pacific. According to BloombergNEF, the volume of corporate PPAs from offsite energy sources surged by 51% in 2024 compared to the previous year, reaching 10.3 gigawatts.

Solar Projects in Japan’s Kyushu and Chugoku Regions

The three solar plants linked to Microsoft’s PPAs with Shizen are based in Kyushu and Chugoku in western Japan. Project financing has already been secured, with one of the facilities operational and the remaining two currently under construction.

Microsoft’s Broader Sustainability Agenda

Microsoft signed its first long-term renewable deal in Japan in 2023, also with Shizen. The company has set an ambitious goal of cutting more carbon than it emits by 2030, underscoring its leadership in corporate climate commitments.

Microsoft’s renewable energy strategy has scaled rapidly. As per its latest sustainability report, the company’s contracted clean power capacity has grown 18-fold since 2020, driven by partnerships in solar and wind projects worldwide.

Shizen Energy’s Expanding Role in Clean Power

Founded in 2011 in the aftermath of the Fukushima nuclear disaster, Shizen Energy has emerged as a key player in Japan’s renewable transition. The company has developed more than 1.2 gigawatts of renewable energy projects globally as of 2024. Beyond Microsoft, Shizen has also recently signed a major PPA with Alphabet Inc.’s Google to power its data centre in Chiba prefecture.

Conclusion

Microsoft’s expanded partnership with Shizen Energy, adding three 20-year solar PPAs and a total capacity of 100 MW, marks another significant milestone in its sustainability journey. With its commitment to becoming carbon negative by 2030, the tech giant continues to invest in long-term clean energy contracts that not only decarbonise its operations but also help accelerate Japan’s renewable transition.

As Asia-Pacific emerges as one of the fastest-growing regions for corporate PPAs, Microsoft’s leadership highlights the growing role of technology companies in shaping global energy demand.

For Shizen, founded after the Fukushima disaster, this collaboration underscores its evolution into a major renewable power developer with global reach. Together, the two companies are advancing a low-carbon future while setting a precedent for cross-border corporate sustainability partnerships.