Microsoft has unveiled a series of initiatives focused on reducing the embodied carbon footprint of its datacenters, including the innovative use of wood as a construction material to reduce reliance on steel and concrete. These new strategies are part of Microsoft’s broader goal to mitigate the emissions impact of its rapidly growing datacenter footprint. Although Microsoft aims to be carbon negative by 2030 and has committed to cutting Scope 3 emissions by more than 50% relative to 2020, the company recently reported that its Scope 3 emissions in 2023 were over 30% higher than in 2020. This rise is attributed to datacenter construction, where building materials and hardware components contribute significantly to embodied carbon.

Steel and concrete are among the leading sources of greenhouse gas emissions, with the World Economic Forum (WEF) reporting that steel manufacturing and cement production contribute approximately 7% and 8%, respectively, to global carbon emissions. One of Microsoft’s key new initiatives involves the use of cross-laminated timber (CLT), a durable, fire-resistant prefabricated wood material, in two datacenters currently under construction in northern Virginia. By incorporating CLT, Microsoft aims to reduce the use of steel and concrete in these facilities.

CLT is crafted by bonding multiple layers of timber in alternating directions, forming a solid, high-strength panel. Typically constructed from spruce, pine, or Douglas fir, CLT offers advantages over standard wood, including greater strength, stability, and a protective layer of char that insulates the structure at high temperatures. In these new datacenters, CLT will be used to replace some of the heavy concrete normally required for floors and ceilings, resulting in a lighter structure that uses significantly less steel.

Microsoft estimates that incorporating CLT will decrease embodied carbon by 35% compared to conventional steel construction and by 65% compared to traditional precast concrete designs. Jim Hanna, who leads sustainability efforts for Microsoft’s datacenter engineering team, remarked: “We have to be system thinkers across the entire value chain of these materials that go into our datacenters and the equipment that supplies our datacenters.”

In addition to adopting CLT, Microsoft is taking further steps to reduce embodied carbon in datacenter construction by updating contract requirements to include low-carbon standards for materials and equipment. The company is also investing in low-carbon building materials and technologies through its Climate Innovation Fund, supporting developers such as Stegra (formerly H2 Green Steel), Boston Metal, CarbonCure, and Prometheus Materials. Brandon Middaugh, who oversees the Climate Innovation Fund’s strategy, stated, “Part of the solution is (figuring out) how do you make sure that our suppliers have the enabling technologies they need to develop the green solution.”

Through these initiatives, Microsoft is striving to minimize its environmental impact and foster sustainable practices within the datacenter industry.