Dive Brief:
- Microsoft will serve as the long-term offtaker for energy and environmental attributes generated from a Cypress Creek Energy solar project in Washington, the energy company said this week.
- The announcement came as Cypress Creek announced that its Ostrea Solar project in Yakima County, Washington, has reached commercial operation, according to a Wednesday press release. The terms of Microsoft’s agreement were not announced.
- For Cypress Creek, the announcement of Microsoft as the long-term offtaker for the Washington solar project follows a July deal with Google to be the “anchor investor” and offtaker for power from its Steel River Energy Center in Arkansas. That project is expected to be the largest solar facility in the U.S.
Dive Insight:
Microsoft signed the power purchase agreement for electricity and environmental products generated by the solar project in the same state as its Redmond, Washington, headquarters. While its headquarters is located in King County, the Ostrea Solar project is connected to the Bonneville Power Administration transmission system, which also serves King County.
Cypress Creek said the Ostrea project is adding 104 megawatts direct current/80 MW alternating current of new electricity generation to the region’s power system. Cypress Creek will own and operate the project for up to 40 years, according to the press release.
Cypress Creek said in the release that the project expands the “clean energy infrastructure needed to meet rising energy demand” in Washington. Washington was the top U.S. state in economic growth in Q1 of this year, with the state’s tech sector fueling growth, according to data from the U.S. Bureau of Economic Analysis. The state — also home to Amazon and others in the software, cloud computing and digital services industries — saw its gross domestic product expand at an annualized rate of 4.5% in the quarter, more than double the national rate of 2.1%.
“Washington’s economy is growing, and that growth requires more electricity,” Cypress Creek CEO Kevin Smith said in the Sept. 2 release.
Cypress Creek said the Ostrea project reaching commercial operation reflects “approximately $180 million” in private investments and will generate an estimated $13.3 million in state and local tax revenues during its operation. The company said it also worked with the state government to conserve approximately 275 acres of habitat of shrubsteppe, one of the most diverse ecosystems in the state.
As Microsoft continues its artificial intelligence buildout, the tech giant said in its latest environmental sustainability report that the company’s emissions spiked 25% year-over-year in 2025. The report said the emissions spike was “primarily driven” by its expanding data center infrastructure, along with the company sunsetting its use of “non-additional” unbundled renewable energy certificates — which are not tied to a specific project.
The data center expansion and policy change on unbundled RECs led to Microsoft’s scope 2 emissions — or emissions from purchased electricity — increasing from 2% of its emissions profile in its 2024 fiscal year to 13% of its total emissions in FY2025.
