Reviewed by Gotrade Internal Analyst
Jakarta, Gotrade News - Microsoft Corporation has just locked in a massive deal to buy 2.85 million soil carbon credits from Indigo Carbon. This record-breaking move is a major play to balance out the soaring operational emissions caused by their aggressive expansion into Artificial Intelligence (AI) infrastructure.
Key Takeaways
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Microsoft is buying 2.85 million credits with an estimated value of up to $228 million.
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This move is crucial for their "carbon negative" 2030 target given AI's massive energy hunger.
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US farmers will pocket 75 percent of the sales as an incentive for regenerative farming.
According to sources cited by Reuters, this 12-year deal is estimated to be worth between $171 million and $228 million. That valuation places Indigo Carbon’s credits in the premium range of $60 to $80 a ton.
The tech giant is determined to hit its "carbon negative" target by 2030, even though their emissions are currently climbing. The massive energy load required by data centers to train and run AI models is the main challenge here.
These credits are generated through regenerative farming methods that boost the soil's ability to absorb and store carbon. We're talking about techniques like reducing tilling and using cover crops intensively.
Validating the Carbon Market
Data from market firm Sylvera shows a significant spike in demand for soil-based credits since last year. Microsoft actually held the previous record too, thanks to a deal with Agoro Carbon.
Meredith Reisfield from Indigo Carbon says this deal brings soil carbon removal into the mainstream of corporate climate action. It solidifies the reputation of high-quality carbon credits, which often face questions about their validity.
The farmers involved will see direct financial gains from this scheme. They are entitled to 75 percent of the weighted average cost of every credit issued from their land.
Phillip Goodman, Microsoft’s Director of Carbon Removal, expressed excitement for this approach that delivers measurable results. Strict verification is the key for Microsoft to ensure their climate claims remain solid.
However, skepticism still lingers regarding the permanence of soil carbon storage. Critics worry that these removal technologies might just be a distraction from the main focus: cutting emissions directly from fossil fuel sources.
Reference:
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Reuters, Microsoft in record deal for soil carbon credits as data centres surge. Diakses pada 15 Januari 2026
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Featured Image: Shutterstock
