Microsoft Vies for Scarce Clean Power in Asia Chipmaking Nations

(Bloomberg) — Microsoft Corp. warned that it is competing for limited supplies of clean electricity in parts of East Asia even as the window to meet a key 2030 climate target narrows.

In Taiwan, South Korea and Japan, the company is competing “for a tiny fraction of the renewable energy available today,” Ken Haig, Microsoft’s senior director of government affairs in Japan, said during a panel discussion at the Cool Earth Innovation Forum in Tokyo on Thursday.

The company’s challenges mirror those of its major chip suppliers, also based in East Asia, who rely heavily on fossil fuels and grids that are struggling to rapidly expand renewable energy sources. Emissions from the production of semiconductors that underpin artificial intelligence services have more than quadrupled in 2024, according to Greenpeace.

As the race for artificial intelligence increases electricity demand, global companies, especially large technology firms, are trying to secure clean energy sources to decarbonize their operations. But some are seeing their emissions increase.

According to its 2025 sustainability report, Microsoft’s total planet warming impact is 23% higher than in 2020; This is partly due to the massive expansion of emissions-intensive data centres. Microsoft has a goal of becoming carbon negative by 2030.

The company’s biggest emissions challenge is reducing Scope 3 emissions, which account for more than 97% of its overall carbon footprint. A significant portion of this comes from semiconductor manufacturing in Japan, South Korea and Taiwan, according to Haig.

“We also need our suppliers to achieve 100% carbon-free energy,” Haig said. Microsoft is collaborating with suppliers through coalitions of energy consumers who advocate for increased renewable energy options in Asia.

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