Microsoft 500 MW offtake with Pivot Energy

Deal Analysis

Microsoft's announced 500 MW power purchase agreement (PPA) with Pivot Energy represents a significant commitment to renewable energy procurement. The offtake agreement, supported by the Microsoft Climate Innovation Fund, aims to foster employment, energy cost savings, and grid resilience across the United States, Mexico, and Brazil. Pivot Energy, alongside Sol Systems, will develop the solar projects to fulfill this large-scale PPA, demonstrating Microsoft's continued investment in sustainable infrastructure and its commitment to achieving its carbon reduction goals. The deal's focus on multiple geographies also highlights a broader strategy of diversifying renewable energy sourcing and supporting local communities. While the financial details of the PPA remain undisclosed, the sheer scale of the 500 MW offtake underscores the growing trend of corporate renewable energy procurement. This deal is notable for the involvement of the Microsoft Climate Innovation Fund, signaling a strategic alignment between investment and sustainability objectives. Furthermore, the partnership with Pivot Energy and Sol Systems, both established players in the solar development space, lends credibility to the project's feasibility and potential for success. The deal is expected to close in 2026, indicating a long-term commitment from all parties involved.

500 MW solar PPA between Microsoft and Pivot Energy.
Supported by the Microsoft Climate Innovation Fund.
Projects located across the United States, Mexico, and Brazil.
Involves established solar developers Pivot Energy and Sol Systems.

Market Context: The corporate PPA market is experiencing substantial growth as companies seek to reduce their carbon footprint and secure long-term energy price stability. Solar energy is a key technology in this market, driven by decreasing costs and increasing efficiency. The United States, Mexico, and Brazil are all attractive markets for renewable energy development, offering a combination of favorable policy environments and strong demand.

Source Intelligence

KEY DETAILS

Microsoft has contracted 40 GW of new renewable energy supply across 26 countries. Microsoft has six energy company partners with which we have over 1 GW of contracted renewable energy capacity. Microsoft has signed over 1.5 GW of distributed solar. Microsoft has a 10.5 GW framework agreement with Brookfield.

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Capacity

Since our carbon negative announcement in 2020, we have contracted 40 gigawatts (GW) of new renewable energy supply across 26 countries, working with more than 95 utilities and developers across 400+ contracts and counting.

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Location

What began in 2013 with a single 110 megawatt (MW) power purchase agreement (PPA) in Texas

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PPA Details

Our 25 MW, 20-year agreement with Shizen represents the first single-asset virtual PPA executed in the country, which helped pave the way to over 2GWs of corporate procurement since 2024, according to Bloomberg New Energy Finance .

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Announcement

In 2020, Microsoft announced a moonshot commitment to become carbon negative by 2030

PARTIES MENTIONED IN SOURCE

P

Pivot Energy seller

"Landmark agreements like our 500 MW offtake with Pivot Energy, or our 270 MW offtake with PowerTrust are expected to foster employment, energy cost savings and grid resilience in communities across the United States, Mexico and Brazil."

S

Sol Systems seller

"Our support for communities shows up in projects like our 500 MW PPA with Sol Systems"

V

Volt Energy Utility seller

"or our 250 MW PPA with Volt Energy Utility that provided local training and jobs, as well as grants to community nonprofit organizations and habitat restoration."

P

PowerTrust seller

"Landmark agreements like our 500 MW offtake with Pivot Energy, or our 270 MW offtake with PowerTrust are expected to foster employment, energy cost savings and grid resilience in communities across the United States, Mexico and Brazil."

B

Brookfield seller

"Combining scale with speed, Microsoft’s landmark 10.5 GW framework agreement with Brookfield sends a long-term, 2030 demand signal to the market that enables developers to raise funding more efficiently, bolster supply chains, hire engineers and construct world-class energy infrastructure."

S

Shizen seller

"Our 25 MW, 20-year agreement with Shizen represents the first single-asset virtual PPA executed in the country, which helped pave the way to over 2GWs of corporate procurement since 2024, according to Bloomberg New Energy Finance ."

R

Renew seller

"In India, Microsoft purchased a combined 437 MW solar/wind hybrid offtake from Renew , where our projects will support energy access and rural electrification."

H

Helion seller

"Microsoft has already taken early steps to support the advancement of a broader set of carbon-free energy technologies as we partner with Helion and Constellation Energy on a 50 MW fusion project in Washington state"

C

Constellation Energy seller

"Microsoft has already taken early steps to support the advancement of a broader set of carbon-free energy technologies as we partner with Helion and Constellation Energy on a 50 MW fusion project in Washington state and work with Constellation to restart the 835 MW Crane Clean Energy Center in Pennsylvania."

high quality Enriched Feb 19, 2026