Microsoft Partners with Stegra to Drive Demand for Near-Zero-Emission Steel for Data Centers
Microsoft has signed two important agreements with Stegra, a leading green steel producer in Sweden, to promote the use of near-zero-emission steel in its data centers. This strategic move aims to reduce greenhouse gas emissions in the supply chain and support Microsoft’s goal of becoming carbon negative by 2030.
Green Steel Supply Agreement
Microsoft will source steel from Stegra’s Boden plant in Sweden, scheduled to begin operations by the end of 2026. The plant uses green hydrogen and renewable electricity to produce steel, cutting CO₂ emissions by up to 95% compared with traditional methods. This steel will be supplied to Microsoft’s data center equipment providers in Europe.
Environmental Attribute Certificates (EACs)
Since Microsoft does not directly purchase building materials, the second agreement allows the company to buy Environmental Attribute Certificates (EACs) from Stegra’s steel products. This enables Microsoft to account for emissions reductions from green steel even if the steel is not physically delivered to data centers outside Europe.
Global Significance
This is the first time the EAC model has been applied in the steel sector, creating opportunities for other companies to participate in the green steel market without directly purchasing steel. The agreement supports Microsoft’s emissions reduction goals and promotes sustainable steel production globally.
Additional Information
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Stegra Boden Plant: Expected to produce 5 million tons of green steel annually by 2030.
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Microsoft Investment: Microsoft invested in Stegra via the Climate Innovation Fund in 2023.
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Green Steel Pricing: Green steel costs approximately 25% more than conventional steel, largely due to the production costs of green hydrogen.
