Microsoft has agreed to purchase 60,000 tons of carbon credits from Indigo, a soil enrichment-focused agriculture company.

The ‘soil carbon credits’ are generated through Indigo’s CAR1459 project, which is being implemented across farms in the US.

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– Getty Images

The project generates the credits through partnerships with more than 40 agribusinesses that support the adoption of soil-improving practices in US farms. The practices include adding cover crops, increasing cover crop diversity or growth period, reducing tillage, improving nitrogen timing, or diversifying rotation.

To date, the company claims to have generated almost a megaton of carbon removals over four harvesting seasons. In addition, the company said it has prevented more than 64 billion gallons of surface water runoff.

"When Microsoft, recognized as the major driver behind the carbon removals market, invests in Indigo's carbon credits, it affirms their confidence in our science, team, and technology," said Dean Banks, CEO of Indigo. "Our microbial and sustainability portfolio spans 20 million acres across 15 countries, and this deal underscores the trust in farmers' hard work to create a healthy and resilient agri-food system."

The agreement is the second between the two companies, with Microsoft purchasing 40,000 credits last June.

"Indigo's work to create resilient farms and secure watersheds across the US delivers measurable climate benefits as well as improved soil and water health and new economic development opportunities in rural communities," said Brian Marrs, senior director of Energy and Carbon Removal, Microsoft.

As part of its drive to reach carbon negativity by 2030, Microsoft has placed an increased onus on the purchase of carbon credits. The company has approached the sector with an agnostic mindset, purchasing credits from across the board. In 2025 alone, it has partnered with several reforestation companies, biochar firms, and Enhanced Rock Weathering companies.

In addition, it has also signed some more left-field agreements, including one last week with a sustainable cement firm, Sublime Cement. As part of the agreement, Microsoft will receive 623,000 tons of the company’s low-carbon cement product.