Microsoft Pauses 100% Renewable Energy Goal as AI Demand Surges 20%
Microsoft has paused its plan to source 100% renewable energy by 2025 after AI-driven data-center workloads surged by over 20%, prompting a full review of its procurement strategy. Shares rose 1.9% today as the S&P 500 and Nasdaq closed at record highs, fueled by strong cloud and AI demand.
1. Reassessing Renewable Targets
Microsoft has opened an internal review of its commitment to source all electricity from renewable sources by 2025 after reporting a more than 20% jump in data-center power consumption driven by AI expansion. The reassessment will explore adjustments to existing power purchase agreements, potential interim grid-based sourcing, and carbon offset mechanisms to balance sustainability goals with surging compute demand.