Microsoft is building wooden data centers in its latest push to cut emissions – could this be the future of AI power?
Steel and concrete, the traditional materials used in data center construction, are major carbon emittersm but in a move toward sustainability, Microsoft is testing fire-resistant cross-laminated timber (CLT) in its first wood-based data centers near a northern Virginia suburb.
The company says this project is part of an “all-hands-on-deck task” to meet the company’s ambitious climate targets: becoming carbon negative by 2030 and offsetting all emissions since its founding by 2050.
Although Microsoft has made progress towards this goal, data centers’ indirect emissions – stemming from materials extraction, manufacturing, and transport – rose by 30.9% over three years.
A market mover
Using CLT, alongside concrete and steel, in the hybrid design is projected to reduce embodied carbon emissions by 35% compared to traditional steel construction and 65% compared to standard concrete.
Microsoft’s decarbonization efforts extend beyond this project, supported by its $1 billion Climate Innovation Fund, which has so far invested $761 million in scalable environmental projects.
Microsoft is collaborating with green building material companies, including Sweden’s Stegra, which is developing a hydrogen-based steel process that emits water vapor instead of carbon, cutting emissions by up to 95%. Microsoft has also partnered with Boston Metal, which uses renewable electricity to produce steel while generating oxygen instead of carbon dioxide.
To lessen reliance on traditional cement, Microsoft has teamed up with companies like CarbonCure, which injects CO₂ into concrete, and Prometheus Materials, which creates zero-carbon cement using microalgae. Microsoft plans to pilot Prometheus’s cement in its Virginia data centers to test its durability.
Sign up to the TechRadar Pro newsletter to get all the top news, opinion, features and guidance your business needs to succeed!
“Microsoft is in a unique position just because they’re so large,” says Thomas Hooker of Thornton Tomasetti, a structural engineering firm working with Microsoft. “They can almost be like a market mover and to some extent actually push some of these technologies to more widespread use just because it’s a high priority for Microsoft.”

More from TechRadar Pro
Steel and concrete, the traditional materials used in data center construction, are major carbon emittersm but in a move toward sustainability, Microsoft is testing fire-resistant cross-laminated timber (CLT) in its first wood-based data centers near a northern Virginia suburb. The company says this project is part of an “all-hands-on-deck task”…
Recent Posts
- LaCie 8big Pro5 review: I tested LaCie’s huge 256TB DAS solution, and it’s ideal for 8K video editing but it comes with a price tag that’s just as big
- Buying your dad a tech gift or gadget for Father’s Day? You may want to wait until Prime Day, if possible
- Which Amazon Fire Stick do I need? A simple guide to the key differences
- Stellar Blade’s slick-looking sequel is officially called Blood Rain
- How much data does your favorite messaging app collect? New study shows 90% of messaging apps now include AI that puts privacy at risk
Archives
- June 2026
- May 2026
- April 2026
- March 2026
- February 2026
- January 2026
- December 2025
- November 2025
- October 2025
- September 2025
- August 2025
- July 2025
- June 2025
- May 2025
- April 2025
- March 2025
- February 2025
- January 2025
- December 2024
- November 2024
- October 2024
- September 2024
- August 2024
- July 2024
- June 2024
- May 2024
- April 2024
- March 2024
- February 2024
- January 2024
- December 2023
- November 2023
- October 2023
- September 2023
- August 2023
- July 2023
- June 2023