Microsoft buys carbon credits, AI strains goals

Microsoft has purchased 650,000 metric tons of carbon removal credits from startup BioCirc, signaling a continuation of its climate initiatives despite recent reports of paused deals. This purchase is significant as Microsoft dominates the carbon removal credit market, influencing the survival of industry startups. While the company denies pausing its program, it acknowledges adjusting procurement pace. The deal comes as Microsoft's AI expansion, particularly its data center energy needs, strains its sustainability targets, potentially requiring increased carbon removal purchases to meet its 2030 carbon-negative goal.