Microsoft and Stegra sign supply agreement for near-zero emission steel for data centers
By Global Infrastructure Sherpa · Sep 1, 2025
Stegra Green Steel Plant
Project
Microsoft and Stegra signed agreements in September 2025 for Stegra to supply near-zero emission steel for Microsoft's data center construction and operations.
Deal Analysis
In September 2025, Microsoft and Stegra announced a supply agreement for near-zero emission steel to be used in Microsoft's data center construction and operations in Sweden. This agreement underscores the increasing emphasis on sustainable practices within the data center sector, particularly concerning the carbon footprint of building materials. While the financial details remain undisclosed, the partnership between a major technology player like Microsoft and a global engineering and construction firm like Stegra signals a commitment to incorporating environmentally conscious solutions into critical infrastructure projects.
The deal is notable for its focus on near-zero emission steel, reflecting a growing trend towards decarbonizing the construction supply chain. Microsoft's commitment to sourcing sustainable materials for its data centers could influence other industry players to adopt similar practices. The location in Sweden is also relevant, as the country is known for its progressive environmental policies and focus on sustainable development. This agreement could serve as a model for future collaborations aimed at reducing the environmental impact of data center infrastructure globally.
- Microsoft is sourcing near-zero emission steel for its data centers.
- Stegra, a global engineering and construction company, is the supplier.
- The deal reflects a commitment to decarbonizing the construction supply chain.
- The agreement is for data center projects located in Sweden.
Market Context: The data center sector is experiencing rapid growth, driving increased demand for resources and energy. This has led to a greater focus on sustainability, with companies exploring innovative solutions to reduce their environmental impact, including the use of sustainable building materials and renewable energy sources.
Source Intelligence
KEY DETAILS
Stegra is insourcing railway and port infrastructure. "A major portion of the €1 billion raise is earmarked for investments in dedicated railway and port infrastructure."
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Deal Size
Stegra has launched a new financing round, seeking capital estimated at up to €1 billion, or around $1.14 billion.
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Capacity
Given the plan to produce 5 million tonnes of green steel annually by 2030
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Location
The construction of Stegra AB’s green steel plant in Boden, Sweden, represents one of Europe’s most ambitious industrial undertakings
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Financials
a pioneering project valued at approximately €6.5 billion.
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Announcement
smoothx | Oct 28, 2025
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Signing
including two landmark agreements signed in September 2025 with Microsoft to supply near-zero emission steel for the technology giant’s data center construction and operations.
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COD
This indicates an aggressive integration strategy to ensure external logistical dependencies do not derail the 2026 operational target.
PARTIES MENTIONED IN SOURCE
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Stegra
seller
"Stegra has a unique position in the green steel landscape with a strong order book, a competitive cost position, and proven execution capabilities”."
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Microsoft
buyer
"The commercial viability is evidenced by significant corporate partnerships, including two landmark agreements signed in September 2025 with Microsoft to supply near-zero emission steel for the technology giant’s data center construction and operations."
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Kallskar AB
investor
"The renewed backing from existing foundational investors, including Kallskar AB, Altor Equity Partners AB, and FAM AB, provides strong initial momentum for the capital raise."
A
Altor Equity Partners AB
investor
"The renewed backing from existing foundational investors, including Kallskar AB, Altor Equity Partners AB, and FAM AB, provides strong initial momentum for the capital raise."
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FAM AB
investor
"The renewed backing from existing foundational investors, including Kallskar AB, Altor Equity Partners AB, and FAM AB, provides strong initial momentum for the capital raise."
high quality
Enriched Feb 19, 2026
Market Context
This deal is part of the Data Center sector in Sweden.
1 of 129 Data Center deals tracked this month · Updated daily
Global Infrastructure Sherpa