Microsoft Corp. (MSFT) may be facing a hard tradeoff between its AI growth plans and its clean energy goals. According to Bloomberg, the tech giant is weighing whether to delay or drop its 2030 goal to match 100% of its power use with clean energy purchases each hour.
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Forget margin or options. Here's how the pros trade AMZNThe goal, known as 100/100/0, was set in 2021, before the AI boom drove a sharp rise in data center power needs. Unlike a basic clean-power target, this plan calls for Microsoft to match its power use hour by hour on the same grids where it uses power. That is much harder than buying enough clean power over a full year.
Microsoft has not made a final call yet. The company said it still backs its green goals, but Chief Sustainability Officer Melanie Nakagawa said the work “requires ongoing effort to review and refine our approach.” She also said, “At times we may make adjustments to our approach toward our sustainability goals.”
Meanwhile, MSFT shares rose slightly on Wednesday, closing at $413.96.
AI Growth Is Raising the Power Bill
The key issue is simple. AI needs a lot of data center power, and Microsoft is racing to add more of it. The company has said it has been adding about one gigawatt of data center space every three months. That is a huge buildout, and it comes at a high cost.
Bloomberg also noted that Microsoft expects to spend $190 billion through the end of December, with much of that tied to data centers. As a result, the firm is taking a closer look at clean energy costs while it tries to keep pace in AI.
This is not just a Microsoft issue. Amazon (AMZN), Meta Platforms (META), and Alphabet (GOOGL) are also dealing with higher power needs as they build out AI tools and cloud systems. At the same time, their carbon output has increased from levels seen before the late-2022 launch of ChatGPT.
Natural Gas May Gain from the AI Boom
Meanwhile, natural gas is becoming more useful for firms that need power fast. Bloomberg reported that Microsoft has held talks with Chevron Corp. (CVX) to help fund a large gas plant in West Texas.
That shift could have broad market effects. For Microsoft, it may pose a new ESG risk, but it could also help the company avoid delays in its AI buildout. For power, gas, and grid firms, AI demand may be a long-term growth driver. Still, the main point for investors is clear. Microsoft’s AI push remains a major growth story, but it is also making the firm’s climate goals harder to meet. The next step will be whether Microsoft can keep both plans on track, or whether AI wins the near-term budget fight.
Is Microsoft Stock a Buy or Sell?
Turning to the Street, Microsoft Corporation has a Strong Buy consensus, based on 20 analysts’ ratings. The average MSFT price target is $552.71, implying a 33.52% upside from the current price.
