TL;DR
- Microsoft purchased 4.9 million metric tons of carbon removal credits from Vaulted Deep.
- The agreement runs through 2038 but financial terms remain undisclosed.
- Vaulted Deep injects blended solid waste deep underground using fracking-based tech.
- Microsoft’s emissions have grown 24% since 2020 despite its carbon-negative goal.
- Other deals include Chestnut Carbon and CO280 totaling over 10M metric tons.
Microsoft Struggles to Meet Its 2030 Carbon-Negative Goal
As Microsoft accelerates its data center buildout, it’s facing a surge in carbon emissions. Since its 2020 carbon pledge, the company’s emissions have increased nearly 25%, complicating its goal to become carbon negative by 2030.
To close that gap, Microsoft has turned to carbon removal credits, including a new deal announced with Vaulted Deep for 4.9 million metric tons of removal across a 12-year contract. Terms of the purchase were not disclosed, but the agreement extends through 2038.
Vaulted Deep was a runner-up in the Xprize Carbon competition, and previously raised a $32 million Series A led by Prelude Ventures.
How Vaulted Deep Works
The startup operates like a reverse oil company. It captures solid waste — such as treated sewage, manure, and paper sludge — and transforms it into a slurry that gets injected into porous rock formations deep underground. This process uses well-drilling and pore-opening methods adapted from fracking technology.
To date, Vaulted Deep has removed 18,000+ metric tons of CO₂ using this method. The approach not only avoids methane leakage but permanently sequesters carbon that would otherwise return to the atmosphere through incineration or landfill decomposition.
Microsoft’s Carbon Emissions vs. Goals
| Metric | Value | Source |
| Emissions in 2024 | 14.9M metric tons | Microsoft 2024 ESG Report |
| Emissions Goal for 2030 | <7M metric tons | Microsoft Carbon Pledge |
| Vaulted Deep Contract | 4.9M tons through 2038 | TechCrunch |
| Chestnut Carbon Deal | 7M tons via reforestation | Chestnut Carbon |
| CO280 Deal | 3.7M tons via paper mill capture | CO280 |
Microsoft Expands Carbon Removal Strategy
Beyond Vaulted Deep, Microsoft is deepening its climate mitigation efforts through a portfolio of carbon removal partnerships. These include a 7 million-ton deal with Chestnut Carbon to reforest 60,000 acres in the Southeastern U.S. and a 3.7 million-ton contract with CO280 to capture emissions from paper mill operations in the Gulf Coast.
Despite these initiatives, Microsoft remains far from its 2030 target. Last year’s 14.9 million metric tons of emissions are more than double its intended footprint for that year.
Still, these sizable carbon removal purchases signal a strategic shift. Rather than relying solely on emissions reductions, Microsoft is also investing heavily in climate tech innovation to meet its long-term sustainability targets.
