In the race to decarbonize the construction industry, Microsoft’s recent datacenter project in Northern Virginia stands as a beacon of innovation and sustainability. By integrating cross-laminated timber (CLT) into the construction of two new datacenters, Microsoft has demonstrated a bold approach to reducing the embodied carbon footprint of its buildings. The hybrid structure, which combines CLT with steel and concrete, has slashed the carbon emissions associated with these datacenters by an estimated 35% compared to traditional steel construction and a staggering 65% compared to typical precast concrete.
The environmental benefits of this approach are clear. Concrete and steel, which together account for approximately 13% of global CO2 emissions, are being offset by the use of CLT, a material that not only sequesters carbon but also offers structural integrity and aesthetic appeal. This shift towards low-carbon materials is part of a broader trend in the construction industry, where there’s a growing demand for sustainable building practices.
However, the path to widespread adoption of low-carbon materials is fraught with challenges. Despite the increasing availability of CLT in the United States and Europe, supply gaps remain a significant hurdle. To address this, Microsoft employs a multi-faceted strategy that includes purchasing Environmental Attribute Certificates (EACs) and investing in market demand signals.
EACs, which are relatively new to the building materials sector, allow companies to support low-carbon solutions without the logistical and environmental costs of transporting materials over long distances. For instance, if a low-carbon cement solution is available in Florida but not in Washington, where a new datacenter is being planned, Microsoft can purchase EACs from Florida. This approach ensures that the low-carbon cement is still sold and helps to build a market for these sustainable materials.
To ensure the integrity of EACs, Microsoft has collaborated with Carbon Direct to publish “Criteria for High-Quality Environmental Attribute Certificates in the Concrete and Steel Sector.” These criteria cover seven key areas: qualifying conditions, social harms and benefits, environmental harms and benefits, additionality and baselines, catalytic impact, verifiability, and leakage. By adhering to these standards, Microsoft aims to accelerate decarbonization and catalyze market expansion for decarbonized materials across supply chains.
In addition to EACs, Microsoft is actively investing in the development of new low-carbon building materials. Through its $1 billion Climate Innovation Fund (CIF), the company is accelerating the deployment of first-of-their-kind technologies. This fund has already supported innovations in carbon dioxide removal, advanced energy systems, building materials, and sustainable fuels. By investing in these areas, Microsoft is not only reducing its own carbon footprint but also signaling market demand for sustainable construction practices.
Microsoft’s approach to building with low-carbon materials is a testament to the company’s commitment to sustainability. By leveraging EACs and strategic investments, Microsoft is paving the way for a future where construction is not just about erecting structures but about building a more sustainable world. This strategy not only addresses the immediate challenges of material availability but also lays the groundwork for long-term market transformation. As more companies follow suit, the construction industry can look forward to a future where low-carbon materials are the norm rather than the exception.
The construction industry is at a crossroads. The demand for sustainable building practices is growing, but the supply of low-carbon materials remains inconsistent. Microsoft’s innovative approach to this challenge—combining the use of CLT, EACs, and strategic investments—offers a roadmap for others to follow. By embracing these strategies, the industry can move closer to its goal of achieving carbon neutrality, one building at a time.