Microsoft has announced that it is building its first data-centres made with superstrong ultra-lightweight wood in a bid to slash the use of steel and concrete, which are among the most significant sources of carbon emissions.
The Need for Sustainable Data Centres
The global rise in data consumption has intensified the need for data-centres, which power everything from cloud storage to AI. However, data-centres are notoriously resource-intensive, demanding vast amounts of energy to run and cool high-performance servers. Traditionally constructed using steel and concrete, data-centres also contribute significantly to the carbon footprint through the embodied carbon in these materials. For example, according to the World Economic Forum, steel production is responsible for around 7 per cent of global carbon emissions, while cement production accounts for another 8 per cent.
Carbon Neutral by 2030
Microsoft has pledged to become carbon-negative by 2030, aiming to remove more carbon from the atmosphere than it emits. As part of this commitment, the company has been experimenting with innovative materials to cut down emissions in its construction processes, resulting in the decision to use wood-based construction for two new data-centres in Virginia, USA.
Why CLT?
The use of wood in these new data-centres, specifically cross-laminated timber (CLT), is expected to reduce the embodied carbon footprint by 35 per cent compared to traditional steel structures and by an impressive 65 per cent compared to standard concrete. This material, which is central to Microsoft’s strategy, has been gaining traction as a sustainable alternative to steel and concrete. As engineered wood, CLT’s made by gluing multiple layers of timber at right angles, creating a product that is both strong and lightweight. One of the significant advantages of CLT is its fire resistance, i.e. when exposed to fire, CLT forms a char layer on its surface that acts as an insulator, slowing down the spread of flames and maintaining the structural integrity longer than steel.
This innovative approach is not without its challenges. While CLT is increasingly used in Europe for green building projects, the technology is still relatively new in the United States, especially for large-scale applications like data-centres.
By adopting this material, Microsoft hopes to encourage broader acceptance in the industry, potentially lowering costs and boosting availability. According to Thomas Hooker, an associate at Thornton Tomasetti, the structural engineering firm working with Microsoft, “Microsoft’s scale means they can act as a market mover, driving these technologies towards more widespread use.”
Actually, It’s a Wood, Steel, and Concrete Hybrid
Although Microsoft is keen to highlight the wood (CLT) used in its new data-centres, in reality, Microsoft’s new data-centres employ a hybrid construction model, combining CLT with steel and concrete. While CLT serves as the primary structural material, a thin layer of concrete reinforces floors and ceilings to ensure durability. This combination allows Microsoft to achieve a balance between sustainability and structural resilience, reducing emissions without compromising performance.
Speed and Cost Advantages
Beyond the environmental benefits, hybrid construction with CLT offers practical advantages in speed and cost. Since CLT panels are prefabricated, they can be assembled more quickly and with less skilled labour than traditional steel or concrete. This efficiency reduces both construction time and costs, further adding to the sustainability benefits by lowering resource consumption.
Microsoft’s Climate Innovation Fund
Microsoft’s commitment to sustainability extends beyond its data-centres. In 2020, for example, the company launched its $1 billion Climate Innovation Fund to support green technology ventures. This fund has already invested $761 million in companies developing low-carbon building materials, including ventures focused on green steel and low-carbon concrete.
One example is Microsoft’s investment in H2 Green Steel (now Stegra), a Swedish company developing steel made with renewable hydrogen rather than coal. This method, which reduces carbon emissions by up to 95 per cent compared to traditional steel production, highlights Microsoft’s broader strategy to decarbonise the materials used across its supply chain. Similarly, Microsoft has partnered with CarbonCure, a company that injects carbon dioxide into concrete, effectively trapping it and reducing emissions.
Brandon Middaugh, who oversees the Climate Innovation Fund, has emphasised the importance of collaboration with suppliers, saying: “What we’re trying to do is be the catalyst… that gets these early contracts done.” By investing in these companies, Microsoft is supporting the development of sustainable materials that could eventually become mainstream, helping to bridge the gap between current practices and its ambitious 2030 goals.
Not The Only Tech Company with Sustainability Initiatives
It’s worth noting here, however, that Microsoft is not alone in its sustainability strategy. For example, as part of a broader trend within the tech industry, other major companies, including Google, Amazon, and Apple, have also launched initiatives aimed at reducing their environmental impact, particularly in the area of data-centres.
Google has been a leader in renewable energy for over a decade, aiming to run all of its data-centres on carbon-free energy by 2030. The company’s “24/7 Carbon-Free Energy” initiative involves matching every hour of energy consumption with clean energy sources like wind and solar, effectively eliminating reliance on fossil fuels. Google has also pioneered the use of AI to optimise data-centre cooling systems, achieving reported energy savings of up to 30 per cent.
Amazon, too, has committed to reaching net-zero carbon by 2040 through its Climate Pledge initiative. The company’s sustainability efforts focus on renewable energy, with Amazon now being the world’s largest corporate buyer of renewable energy. Also, Amazon Web Services (AWS) is exploring advanced cooling methods and waste heat recovery to reduce the environmental footprint of its data-centres.
Apple’s approach to sustainability involves a combination of renewable energy and innovative materials. The company’s data-centres have been powered entirely by renewable energy since 2013, and it has implemented closed-loop manufacturing processes that use recycled materials for its products. In recent years, Apple has also started using recycled aluminium and rare earth elements in its devices, reducing its dependence on resource-intensive mining.
While each company’s strategy has unique elements, they appear to share the common goal of reducing emissions and adopting sustainable practices. Microsoft’s use of CLT sets it apart, however, as it is one of the first to incorporate engineered wood at a hyperscale level. This bold approach could inspire others in the industry to rethink their construction practices, particularly in regions where sustainable building materials like CLT are readily available.
Overcoming the Challenges of Green Construction
That said, building with low-carbon materials like CLT is easier said than done and presents certain challenges. For example, CLT costs more than traditional timber and requires specialised knowledge for installation. David Swanson, a structural engineer involved in Microsoft’s data-centre design, has acknowledged these challenges but has noted that compared to traditional timber, CLT can be cost-effective for large projects due to reduced construction time and less need for skilled labour.
Another challenge is scalability. While CLT is gaining popularity, the supply chain for low-carbon concrete and steel remains fragmented, with smaller producers struggling to keep up with demand. To address these issues, Microsoft has been working closely with suppliers, ensuring they have access to the resources needed to develop sustainable alternatives. According to Jim Hanna, Microsoft’s data-centre sustainability lead, “It’s an all-hands-on-deck task to meet our sustainability goals.”
Also, the technology behind green building materials is still evolving. For example, Microsoft has invested in Prometheus Materials, a company developing zero-carbon cement from microalgae. This technology (though promising) is still in its early stages and requires further testing before it can be widely adopted. As Hanna notes, “Planning for a net-zero carbon future is a complex exercise, requiring us to be system thinkers across the entire value chain.”
Setting a Precedent for Green Construction
Microsoft’s wood-based data-centres are more than just an experiment; they may represent a new direction in sustainable construction. By using CLT on such a large scale, Microsoft is challenging industry norms and encouraging other companies to consider alternative materials that are both sustainable and functional. This approach could pave the way for broader adoption of low-carbon construction practices across sectors, from technology to healthcare and education.
A Glimpse Into the Future?
As the tech industry faces mounting pressure to reduce its carbon footprint, Microsoft’s strategy offers a glimpse into the future of green building. With its hybrid construction model, commitment to sustainable materials, and support for climate innovation, Microsoft is positioning itself as a leader in environmental responsibility. If successful, the wooden data-centres in Virginia could set a new standard for sustainability in the industry, demonstrating that innovation and sustainability can indeed go hand in hand.
What Does This Mean for Your Organisation?
Microsoft’s venture into using wood as a primary construction material for data-centres may signal more than a commitment to environmental targets; it points to a future in which technology and sustainability can be seamlessly intertwined. While cross-laminated timber (CLT) still has hurdles to overcome in terms of cost, availability, and specialist knowledge, the success of Microsoft’s hybrid model could inspire a paradigm shift across the tech sector and beyond. If these pioneering data-centres prove effective, they could pave the way for other companies to adopt low-carbon materials in their operations, particularly in industries where data infrastructure continues to expand.
The potential of this project extends beyond Microsoft’s carbon reduction and could open doors to new possibilities for sustainable building on a large scale. By investing in CLT and other low-carbon materials, Microsoft may be driving demand and supporting innovations that could eventually reduce costs, making these options more accessible. Also, the impact of Microsoft’s choices is amplified by its partnerships and investments through the Climate Innovation Fund, which addresses gaps in the low-carbon supply chain.
This support plays a vital role in empowering smaller green startups and accelerating the market readiness of sustainable materials, a crucial factor if the construction industry is to meet its carbon reduction targets. For instance, the company’s collaboration with green steel and concrete companies demonstrates how leveraging corporate reach can catalyse broader adoption of sustainable practices across the entire value chain.
