Microsoft Makes Largest Wind Energy Investment (MSFT)

Microsoft Makes Largest Wind Energy Investment (MSFT)

Microsoft Corporation (MSFT) announced on Monday that it has inked two agreements that translate to its largest deal for renewable wind energy, aimed at powering the massive collection of datacenters it has in the U.S.

On Monday, the Redmond, Wash.-based tech giant said it signed a deal with insurance organization Allianz Risk Transfer to buy energy from a new 178-megawatt Bloom Wind project located in Kansas. In a statement, Microsoft explains that the deal "fixes" its contracted energy costs over a long-term agreement. The second deal is a long-term contract with Black Hills Energy to buy 59 megawatts of energy "certificates" related to two wind projects near Microsoft's Cheyenne, Wyo., datacenter site. (See also: Top 5 Wind-Power Stocks of 2016.)

Both contracts amount to 237 megawatts of generating capacity, which brings Microsoft's U.S.-based wind power total to more than 500 megawatts. The megawatt (or 1,000 kilowatts) is a standard measurement of electricity production. According to the company, the combined output of both sites should produce enough energy annually to supply Microsoft's Cheyenne facility with all the energy it needs.

"Microsoft is committed to building a responsible cloud, and these agreements represent progress toward our goal of improving the energy mix at our datacenters," said Brad Smith, Microsoft president and chief legal officer in a statement. "Our commitment extends beyond greening our own operations because these projects help create a greener, more reliable grid in the communities in which we operate." (See also: Amazon Announces Its Largest-Ever Renewable Energy Project.)

For Microsoft, these two contracts follow two other agreements the company has made to further its efforts in renewable and carbon-free energy. Earlier this year, the company reached an agreement with the 175-megawatt Pilot Hill wind project in Illinois and the 110-megawatt Keechi wind project in Texas. It also reached an agreement with the Commonwealth of Virginia and Dominion Energy in March.

Microsoft shares closed Monday at $58.12, down 1.52%. The shares have risen 4.76% year to date, compared with a 5.76% rise in the S&P 500 (SPX