• Eco-Friendly Construction: Microsoft’s new datacenters use cross-laminated timber (CLT), reducing embodied carbon by 35% compared to steel and 65% compared to concrete.
• Decarbonization Goals: The initiative supports Microsoft’s target to be carbon negative by 2030 and eliminate historical emissions by 2050.
• Investments in Green Innovation: Microsoft’s $1 billion Climate Innovation Fund backs technologies to scale low-carbon materials and renewable energy solutions.

Microsoft is pioneering wood-based construction in its datacenters in Northern Virginia, substituting steel and concrete with cross-laminated timber (CLT). The move cuts embodied carbon emissions by up to 65% compared to traditional building methods.

Why It Matters:

This construction model aligns with Microsoft’s commitment to being carbon negative by 2030. The company aims to lead in sustainable building practices, demonstrating how low-carbon materials can be used in high-demand data facilities.

“It’s an all-hands-on-deck task,” says Jim Hanna, leader of sustainability for Microsoft’s datacenters engineering team.

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How It Works:

CLT, a fire-resistant, layered wood, offers a stable, low-carbon alternative to concrete. It chars instead of burning, providing natural insulation and reducing reliance on high-emission materials. CLT is sourced sustainably, supporting eco-friendly production goals. For added resilience, Microsoft applies a thin concrete layer to ensure waterproofing and stability.

“We’re constantly trying to validate the suitability of these novel materials for use in a datacenters environment,” explains David Swanson, a structural engineer on Microsoft’s datacenter team.

Investment in Climate Innovation:

Microsoft’s Climate Innovation Fund, launched with a $1 billion pledge, supports advancements in low-carbon building materials and clean energy. To date, $761 million has been committed to transformational technologies like hydrogen-powered steel, which reduces steel emissions by up to 95%.

“What’s not so common is to see an investor like Microsoft…provide capital and also sign a contract to buy the output,” says Brandon Middaugh, manager of the Climate Innovation Fund.

Looking Ahead:

Microsoft’s actions are creating market momentum, pushing suppliers to adopt sustainable practices. The company’s scale allows it to test innovative materials, like CLT, at a commercial level. While green construction remains costly, Microsoft’s early adoption could drive broader industry acceptance, helping achieve net-zero emissions.

“We have to be system thinkers across the entire value chain of these materials,” notes Hanna, emphasizing the scope of Microsoft’s climate-focused strategy.