Microsoft in record deal for soil carbon credits as data centres surge - Reuters

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Microsoft signed a record 12-year deal with Indigo Ag to purchase 2.85 million soil carbon removal credits, generated via regenerative agriculture practices by U.S. farmers, marking one of the largest such agreements to date. This deal, announced January 15, 2026, supports Microsoft's carbon removal strategy amid surging data center emissions from AI expansion.[1][3][4][5]

Key parties include Microsoft, led by Director of Carbon Removal Phillip Goodman, and Indigo Ag, with Senior Director of Policy Meredith Reisfield; credits follow Indigo's Carbon by Indigo program under the Climate Action Reserve’s Soil Enrichment Protocol, validated via soil samples, data, and third-party verifiers, with credits approved under the Integrity Council for the Voluntary Carbon Market’s Core Carbon Principles. This is their third collaboration, after 40,000 tonnes in June 2024 and 60,000 tonnes in May 2025; Indigo has issued nearly 1 million credits since 2018 across 8 million acres.[1][3][4][5]

The deal addresses Microsoft's rising emissions from data centers while advancing its 2030 carbon-negative goal, having purchased over 34.6 million tonnes of removals total; it builds on early 2026 deals like 2 million tonnes of afforestation credits from Rubicon Carbon. Regenerative practices enhance soil health, farm resiliency, and payments to farmers over a 40-year durability period with 100-year reversal safeguards.[1][3][4][5][7]

Newsworthy for its record scale in soil carbon deals, high-integrity verification, long-term commitment signaling market maturity, and timing with Microsoft's AI-driven energy surge and flurry of 2026 purchases totaling nearly 5 million tonnes early in the year.[1][3][4][5][6]

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