Microsoft could be set to scrap one of its most ambitious clean-energy targets due to the impact of AI data center growth on its capacity requirements.

According to Bloomberg reporting, the tech giant is currently determining whether to delay or abandon its 2030 target to match 100 percent of its hourly electricity use with clean energy purchases. According to the report, discussions remain ongoing, with no decision made yet.

"Microsoft remains committed to its company goals to be carbon negative, water positive, zero waste, and protect ecosystems. In 2025, we met a milestone on this journey by matching 100 percent of our annual global electricity consumption with renewable energy," said Microsoft's chief sustainability officer Melanie Nakagawa in an email to Seeking Alpha.

"Fulfilling our carbon commitment requires ongoing effort to review and refine our approach as markets mature, policy environments evolve, and emerging innovative solutions scale. At times, we may make adjustments to our approach toward our sustainability goals. Any adjustments we make are part of our disciplined approach - not a change in our long-term ambition," Nakagawa added.

Microsoft announced its commitment to match 100 percent of its electricity consumption with renewable energy back in 2021. Unlike standard renewable procurement strategies that aim to match consumption on an annual basis, the initiative saw Microsoft seek to match 100 percent of its electricity consumption, 100 percent of the time, with zero-carbon energy purchases from the same power grids from which it was drawing the energy.

However, due to the vast capacity requirements of AI data centers, many of the major hyperscalers, while still prioritizing renewable procurement, have looked to natural gas as the most dispatchable power option. Last month, Microsoft signed a deal with Chevron and Engine No. 1 that could see the firm procure up to 2.5GW of natural gas power to use for a new data center. Meta has also signed deals to procure natural gas capacity to power its data center operations, marking a notable shift in the strategies of major hyperscalers.

This has already had a direct impact on companies' carbon emissions, with Meta, Alphabet, Amazon, and Microsoft all seeing marked increases. In its 2025 sustainability report, Microsoft reported a 23 percent increase in its carbon emissions compared to 2020 benchmarks.

Reports that Microsoft could be mothballing its 24/7 matching commitment come just weeks after reports surfaced that it would pause all carbon removal purchases. Microsoft denied these rumors, claiming that the perceived pause was in fact an adjustment to the “pace or volume of our carbon removal procurement as we continue to refine our approach toward sustainability goals.”