Microsoft agrees record deal for soil carbon credits as data centres surge

Microsoft has agreed to buy 2.85 million soil carbon credits from Indigo Carbon under a reported 12-year deal, part of its goal to be carbon negative by 2030. The price range was reported as $60 to $80 per ton, which would value the agreement at roughly $171 million to $228 million.

Microsoft has agreed with Indigo Carbon to buy 2.85 million soil carbon credits linked to regenerative agriculture in the United States. The purchase is reported as a 12-year tie-up and is part of Microsoft's stated plan to be carbon negative by 2030. A person familiar with the deal told Reuters the credits fall within a historic range of $60 to $80 a ton, which would value the agreement at about $171 million to $228 million. The deal comes as emissions linked to artificial intelligence and an expansion of data centres have risen. Key facts: - The agreement is for 2.85 million soil carbon credits supplied by Indigo Carbon. - Reported term of the purchase is 12 years. - A source cited a price range of $60 to $80 per ton, implying a deal value of roughly $171 million to $228 million. - Regenerative farming practices tied to these credits include reduced tilling, use of cover crops and managed grazing to increase soil carbon and retain water. - Indigo says farmers receive 75% of the average weighted cost of a credit from any given issuance or crop year. - Market data referenced that Microsoft previously bought 2.6 million credits from Agoro Carbon, and that Microsoft is a major buyer of carbon removal credits. Summary: The reported purchase is described as a record volume for soil carbon credits and reflects increased corporate demand for carbon removals as data centre-related emissions climb. Undetermined at this time.