Microsoft wants to drastically cut carbon emissions, so it’s building data centers with wood

Microsoft has unveiled plans to build a new data center using wood in a bid to tackle surging carbon emissions.

While a wooden data center may sound improbable, Microsoft said, the initiative will use a hybrid approach developed by engineers at Microsoft that leverages cross-laminated timber (CLT).

CLT is a fire-resistant prefabricated wood material that is also ultra-lightweight, the firm said, allowing Microsoft to drastically reduce its use of steel and concrete which are large sources of carbon emissions.

Though the project will supplement the steel and concrete floor structure throughout the two-story buildings, it will still perform and function like a traditional steel and concrete building, according to a promotional video.

The planned construction is estimated to significantly reduce the embodied carbon footprint of two new data centers by 35% compared to typical steel constructions, and 65% compared to typical concrete constructions.

This move comes as part of a wider company focus on decarbonization, with Microsoft data center sustainability lead Jim Hanna describing the ‘all-hands-on-deck’ approach to emissions reductions.

Microsoft reported that it is updating the language of its contracts to include low-carbon material requirements, selecting carbon-free high-volume suppliers, and investing in low-carbon building materials.

CLT is an example of such a material, and Microsoft believes this new project may be one of the first hyperscale examples of engineered wood use in a US data center. The data center is located in northern Virginia.

Microsoft has its work cut out

Following its initial plans to be carbon-negative by 2030, Microsoft has been hard at work investing in different energy sources for and reducing the footprint of its increasingly power-hungry data center portfolio.

Earlier this year, Microsoft announced a two-decade power purchase agreement (PPA) with energy firm Constellation to revamp a nuclear reactor in Pennsylvania’s notorious three-mile island.

Despite efforts, recent data doesn’t bode well for Microsoft. The firm’s carbon emissions surged by 29% in 2023 according to its most recent internal sustainability report, largely on the back of AI-focused data center development.