Microsoft's Carbon Removal Plan Gets a Boost from Vaulted Deep
Microsoft’s climate ambitions have never been small. In 2020, the tech giant pledged to become carbon negative by 2030—removing more carbon from the atmosphere than it emits. But as the company builds out its massive network of AI-powered data centers, that promise is becoming increasingly difficult to keep. Since 2020, Microsoft’s emissions have jumped nearly 25%, despite renewable energy investments. In response, Microsoft is turning to carbon removal deals, and one of its biggest bets yet is with Vaulted Deep, a startup that specializes in underground carbon storage. The two companies have signed a 12-year deal to remove 4.9 million metric tons of carbon dioxide by 2038. This move highlights Microsoft’s growing reliance on innovative carbon removal technologies to meet its aggressive climate goals.
Image Credits:Vaulted Deep
How Vaulted Deep's Carbon Removal Technology Works
Vaulted Deep isn’t your average climate tech company. The Xprize finalist has built a process that takes solid organic waste—like treated sewage, manure, or paper sludge—and keeps it out of landfills or incinerators by injecting it deep underground. The waste is turned into a slurry and pumped into porous rock formations using methods adapted from fracking. Unlike traditional carbon offset programs, which can be harder to verify, Vaulted Deep’s approach offers long-term storage in geological formations, effectively locking carbon away for thousands of years. So far, the company has removed over 18,000 metric tons of CO₂ and raised $32 million in Series A funding led by Prelude Ventures. For Microsoft, partnering with such a company aligns with its goal of supporting durable, scalable carbon removal solutions that go beyond nature-based offsets.
Why Microsoft Is Betting Big on Carbon Removal Credits
Despite investing heavily in solar and wind energy to power its operations, Microsoft still emits a significant amount of greenhouse gases—especially from hard-to-replace infrastructure like semiconductors and server hardware. In 2024, the company reported 14.9 million metric tons of emissions, more than double its target for 2030. That reality has pushed Microsoft to explore other levers to cut its net emissions, including buying carbon removal credits from emerging companies. The Vaulted Deep agreement isn’t the only one: Microsoft also recently inked a 7 million metric ton reforestation deal with Chestnut Carbon and a 3.7 million metric ton carbon capture deal with CO280. These deals signal a broader shift in the tech industry toward not just reducing emissions but actively removing carbon from the atmosphere using science-backed solutions.
The Future of Carbon Removal and Microsoft’s Climate Commitment
Microsoft’s strategy to meet its carbon-negative pledge by 2030 now heavily depends on the success of partners like Vaulted Deep. With global scrutiny growing around corporate climate pledges, the company is under pressure to show tangible results. Fortunately, investments in long-duration carbon removal are gaining traction, and Vaulted Deep’s underground injection model offers measurable, verifiable impact. However, critics argue that carbon credits alone can’t fix the emissions problem—they must be paired with aggressive cuts and systemic change. Microsoft seems aware of that balance. While it builds out greener infrastructure, it’s also helping fund a new generation of climate startups. If successful, this could not only restore its credibility but also create a replicable model for other corporations pursuing net-negative goals in a high-emission tech economy.
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