The rise of AI offers an unprecedented opportunity to advance economic growth, enhance productivity and prosperity, and drive the societal transformations we need to accelerate the energy transition. At the same time, energy stands as one of the defining priorities of our time for policymakers and business leaders alike — not in isolation, but because energy sits at the intersection of economic opportunity, innovation, industrial growth, digital transformation, and environmental impact.
Home to some of the world’s fastest growing economies, largest urban populations, and most dynamic manufacturing hubs, the Asia-Pacific region is projected to drive two-thirds of the growth in global electricity demand between now and 2030, according to the International Energy Agency (IEA). This growth is mirrored by a parallel boom in digital infrastructure — datacenters, cloud computing, and artificial intelligence (AI).
In 2024, Asia installed over 413GW of new renewable capacity—71% of the world’s total additions. In Southeast Asia, for example, electricity demand is expected to triple by 2050, driven by population growth, urbanisation, and rising cooling needs. Expanding carbon-free electricity supply, modernizing grids, and embedding sustainability into AI infrastructure will continue to foster energy security, generate new jobs, and strengthen leadership in clean energy and economic growth.
Scaling clean energy and sustainability solutions
Across Asia, Microsoft is signing long-term agreements to procure carbon-free electricity and deploying technologies — from AI-driven grid forecasting to circular datacenter solutions — that make energy systems more reliable, efficient, and sustainable. At the same time, we are partnering with governments, utilities, and industry associations to address policy bottlenecks and enable faster progress. Our efforts span clean energy supply and market development, policy advocacy and technology leadership, water resilience, and circularity — all reinforcing one another to accelerate the transition.
- Expand clean energy supply and market development. Demand for carbon-free electricity is critical to expanding clean energy supply. Globally, Microsoft has contracted more than 34 GW of carbon-free electricity across 24 countries — including 19 GW in 2024 alone — and is applying this model in Asia-Pacific to unlock developer financing and create replicable pathways for buyers. Recent agreements include a 20-year virtual PPA with Shizen Energy in Japan for 25 MWs of solar, a rooftop solar portfolio with EDP Renewables in Singapore for up to 200MWs, and a 10-year agreement with Contact Energy’s Huka Unit 3 geothermal power station supporting the development of new renewable energy capacity in Aotearoa New Zealand. Through our Climate Innovation Fund, Microsoft also supports innovative financing models that accelerate clean energy. In Asia, we’ve invested in Eversource Capital, which has mobilised USD 2 billion and avoided 13.4 million tons of CO₂, and in SEACEF, which de-risks early-stage renewable projects in Southeast Asia. These investments help unlock private capital and bring projects online faster.
- Support policies and technologies that expand carbon-free electricity and grid infrastructure. Advocacy is critical because government policies and regulations set the conditions for renewable growth — from how fast projects get permitted, to the affordability of clean power and whether corporate buyers can access it at all. In Korea, Microsoft worked with peers, suppliers, and associations on the Special Act on Expanding the National Power Grid. Passed in February 2025, the Act will strengthen Korea’s transmission system, enable more renewable integration and create opportunities for corporate buyers. This illustrates how collaborative advocacy and government leadership together can remove bottlenecks. Microsoft is also working with energy partners in Asia to use AI for clean power. One developer is building an AI platform on Azure to better predict solar and wind output. Early results show improved forecast accuracy, fewer costly errors, and smarter maintenance. As it expands, this approach will make renewable energy more reliable — even before new power lines are built.
- Strengthen water resilience. Water stress is one of Asia’s most urgent sustainability challenges — from shortages and poor water quality in areas, to climate-driven variability across the region. Datacenters also rely on water for cooling, so we have a responsibility to reduce our impact while helping communities adapt. That’s why Microsoft is investing in solutions that both strengthen local water resilience and advance our goal to be water positive by 2030. In Malaysia, we partnered with CLEAN International to install rainwater harvesting and filtration in 50 schools, benefiting 20,000 people. In India, collaborations with FluxGen and Botanical Water Technologies conserve millions of litres annually and deliver potable water to underserved communities. In Korea, a partnership with K-Water will create a wetland to restore water flows equal to the daily needs of one million people.
- Advance circularity. Microsoft is also cutting down on datacenter waste. At our Circular Center in Singapore, decommissioned servers and cloud computing hardware is reused or recycled, with parts going to schools, training programs, and manufacturing. We’re also investing in innovators like Cyclic Materials, which recycles rare earth magnets from old equipment — reducing the need for new mining and improving the sustainability of supply chains.
