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Microsoft in record deal for soil carbon credits as data centres surge

Microsoft's 12-year and three-year deals with Indigo Carbon and Varaha add 2.85 million soil carbon credits and 100,000 tons of biochar credits, aiding its carbon-negative goal.

  • In recent months, Microsoft agreed with Indigo Carbon to buy a record 2.85 million soil carbon credits linked to U.S. regenerative agriculture, valued between $171 million and $228 million.
  • Facing rising emissions, Microsoft pursues a carbon-negative goal by 2030 as AI and cloud operations increase energy use, and it stepped up removals buying after a 23.4% rise in fiscal year 2024.
  • Microsoft also signed with Varaha, Indian startup, to buy more than 100,000 tons of carbon credits through 2029 as Varaha develops 18 reactors in Maharashtra, processing about 240,000 tons of biomass in 2025.
  • Locally, the projects help smallholder farmers by turning cotton stalks into biochar that reduces air pollution, but they remain modest against Microsoft's 15.5 million metric tons of greenhouse gas emissions in FY2024.
  • Looking at the market, Microsoft contracted about 22 million metric tons of removals in FY2024 amid surging demand and projects that could sequester about 1 billion tons, though sceptics cite measurement concerns.
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71 Articles

TechCrunchTechCrunch
+2 Reposted by 2 other sources
Center

Microsoft taps India’s Varaha for durable carbon removal offtake

Microsoft is buying over 100,000 tons of carbon dioxide removal credits from India's Varaha over the next three years.

·United States
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ReutersReuters
+7 Reposted by 7 other sources
Center

Microsoft in record deal for soil carbon credits as data centres surge

·United Kingdom
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The Daily AdvanceThe Daily Advance
+45 Reposted by 45 other sources
Center

Indigo to Sell 2.85 Million Tonnes of Carbon Removal to Microsoft, Supporting Soil Health Through Regenerative Agriculture

Under the 12-year agreement, Microsoft will purchase 2.85 million soil carbon removal credits from Indigo, supporting thousands of American farmers across millions of U.S. acres

Microsoft made an agreement with Indigo Carbon to buy a record of 2.85 million carbon credits on the soil related to reproductive agriculture in the United States, as the technology giant intends to become negative in carbon up to 2030, despite the increase in emissions related to artificial intelligence. Although Microsoft — the world's largest carbon removal credit buyer — has not disclosed the cost of the 12-year-old agreement, a person with …

·Brazil
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ESG Today broke the news in on Wednesday, January 14, 2026.
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