• Microsoft will buy electricity and environmental attributes from an 80 MW solar project in Washington under a long-term agreement.
• The project represents about $180 million in private investment and is expected to generate $13.3 million in state and local taxes.
• The deal comes as Microsoft’s expanding data center infrastructure drives higher electricity use and a sharp increase in reported emissions.

Solar project begins commercial operations

Microsoft has secured electricity and environmental attributes from a newly operational solar project as the technology sector’s growing power demand tests corporate climate strategies.

Cypress Creek Energy announced that its Ostrea Solar project reached commercial operation on Sept. 2. Microsoft will serve as the project’s long-term offtaker under a power purchase agreement. Financial terms and the agreement’s duration were not disclosed.

Ostrea adds 104 megawatts of direct current capacity, equivalent to 80 MW of alternating current, to Washington’s electricity system. Cypress Creek will own and operate the facility for up to 40 years.

The project connects to the Bonneville Power Administration transmission system. That network also serves King County, where Microsoft has its headquarters in Redmond.

The arrangement gives Microsoft access to renewable electricity associated with a specific generation asset. That distinction is becoming more important as companies face scrutiny over the quality and additionality of renewable energy procurement.

Technology growth raises electricity demand

Washington’s technology industry is placing increasing pressure on the region’s power infrastructure. The state is also home to Amazon and a large concentration of software, cloud computing and digital services businesses.

Washington recorded the strongest economic growth among US states during the first quarter of the year. Its gross domestic product expanded at an annualized rate of 4.5%, according to the US Bureau of Economic Analysis. The national economy grew by 2.1% over the same period.

“Washington’s economy is growing, and that growth requires more electricity,” Cypress Creek CEO Kevin Smith said in the Sept. 2 release.

Cypress Creek said Ostrea expands the “clean energy infrastructure needed to meet rising energy demand” in the state. That demand is likely to intensify as artificial intelligence workloads accelerate investment in energy-intensive data centers.

For utilities and policymakers, the challenge extends beyond adding renewable capacity. New generation must be connected quickly, supported by sufficient transmission and balanced against reliability requirements. Corporate power buyers can help finance that expansion through long-term contracts.

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Investment brings tax and conservation benefits

Ostrea reflects approximately $180 million in private investment. Cypress Creek estimates that it will produce $13.3 million in state and local tax revenue over its operating life.

The developer also worked with the Washington state government to conserve about 275 acres of shrubsteppe habitat. The ecosystem is among the state’s most biologically diverse and has been reduced by agriculture, development and other land-use pressures.

The conservation commitment highlights a wider issue for renewable energy developers. Projects must deliver emissions benefits while managing impacts on biodiversity, land use and local communities. Investors increasingly assess these considerations alongside generation capacity and expected financial returns.

The Microsoft agreement follows another major technology-sector transaction for Cypress Creek. In July, Google became the anchor investor and an offtaker for the developer’s Steel River Energy Center in Arkansas. That facility is expected to become the largest solar project in the United States.

Microsoft confronts its emissions challenge

Microsoft’s renewable procurement is expanding alongside a difficult emissions trajectory. The company reported that its emissions increased 25% year over year in 2025.

Its latest environmental sustainability report attributed the rise primarily to expanding data center infrastructure. Microsoft also stopped using “non-additional” unbundled renewable energy certificates, which are not connected to specific renewable projects.

Those changes reshaped its emissions profile. Scope 2 emissions, which cover purchased electricity, rose from 2% of Microsoft’s total emissions in fiscal 2024 to 13% in fiscal 2025.

For executives and investors, Ostrea shows how long-term power contracts can support new capacity and strengthen the credibility of corporate electricity claims. Yet a single project cannot offset the scale of demand created by AI infrastructure.

The broader test will be whether technology companies can procure clean power, enable new grid investment and reduce absolute emissions as their operations expand. Washington’s experience will carry relevance far beyond the Pacific Northwest as governments worldwide weigh digital growth against grid resilience, biodiversity and climate commitments.