Microsoft has signed two solar Power Purchase Agreements (PPAs) in Japan with Macquarie Asset Management's portfolio company, Blueleaf Energy.

Details on the PPA are sparse, and the companies have not disclosed the capacity, contract length, or location of the solar farms. DCD has reached out for further information.

Under the terms of the agreements, which were coordinated by Macquarie’s Energy Markets and Customer Solutions team, Microsoft will act as the sole offtaker for the projects. The undisclosed projects are currently entering construction under a build-own-operate model, scheduled to start commercial operations in mid-2027.

Ed Northam, global head of MAM Green Investments, said: “These agreements reflect a relationship that has grown through successful collaboration across multiple markets. We are pleased to work with Microsoft again, supporting its business goals through tailored clean energy solutions that help meet growing global demand for cost-efficient, low-carbon power that can be delivered quickly.”

“Our collaboration with Microsoft is more than a commercial agreement; it is a shared blueprint for a decarbonized future. By bridging the energy landscapes of Japan and India, we are setting a new benchmark for how regional expertise and collaboration can accelerate the delivery of much-needed new generation capacity. These new PPAs in Japan stem from a trust built on the foundation of our successful delivery of the Pachora Hybrid Power Project in India,” added Raghuram Natarajan, CEO of Blueleaf Energy.

Blueleaf Energy is a major player in the Japanese solar market with a portfolio of almost 1.2GW of projects in various stages of deployment. According to the company, many of the projects include battery energy storage.

The deals build on an already existing relationship between Macquarie and Microsoft, with the companies working together since 2020. According to Macquarie, it has 540MW of capacity tied to power purchase agreements with Microsoft across the UK, Spain, and India.

The PPAs follow a major investment pledge by Microsoft into the Japanese market earlier this year. In April, the hyperscaler pledged a $10 billion investment in AI and cloud capabilities in Japan through the end of 2029.

Microsoft opened its Japanese data centers in 2014. Japan East is located in the Saitama Prefecture near Tokyo, while Japan West is in the Osaka Prefecture. The cloud giant has also previously signed PPAs with Shizen Energy in the country in 2023 and 2025.