Microsoft imposes a carbon price on its datacenters and wider business

Here’s an excerpt from my latest report for the Dataenter Technologies Group at 451 Research:

Earlier this year, Microsoft announced that it would become carbon neutral by FY 2013. The company says it will achieve this goal through a three-pronged strategy: be lean, be green and be accountable. Practically, this translates into ongoing efforts such as improving datacenter energy efficiency, reducing air travel, improving the energy efficiency of company facilities, and investing in renewable energy and offset projects.

The company has also set an internal price for carbon and a chargeback mechanism for individual departments. The aim is to identify which departments create the most carbon and provide incentives to curb emissions. The scheme will be applied to a range of departments, including datacenter operations. It could have repercussions on the future siting of facilities. Rather than selecting areas with the cheapest energy (and tax incentives), Microsoft may also have to consider the carbon intensity of the utilities serving that area (something environmental groups such as Greenpeace have campaigned for).

For more go to 451 Research: Microsoft imposes a carbon price on its datacenters and wider business