Microsoft has entered into a new Power Purchase Agreement (PPA) with Japanese renewable energy developer Shizen Energy to procure 100 megawatts (MW) of solar power from four projects located across Japan’s Kyushu and Chugoku regions.
Shizen confirmed that all four projects have reached financial close, with one Kyushu-based facility already operational. The remaining three sites are under construction and will be managed by Shizen Operations, the company’s operation and asset management subsidiary, once they come online.
While Microsoft and Shizen did not disclose the specific locations, capacity breakdowns or contract durations, the projects mark a deepening of the two companies’ partnership in Japan’s growing renewable energy market.
“Following the Inuyama Project, we are honoured to have signed long-term agreements with Microsoft for several new projects,” said Rei Ushikubo, Executive Officer of Shizen Energy. “Securing financing from both domestic and international institutions for these projects reflects the expanding role of renewable PPAs in Japan. We will continue to prioritise our PPA business to support customers’ decarbonisation efforts.”
This is Microsoft’s second collaboration with Shizen Energy. In October 2023, the companies signed a 20-year virtual PPA for a 25MW solar project in Inuyama City, Aichi Prefecture—Microsoft’s first renewable power deal in Japan.
Founded in 2011, Shizen Energy develops renewable projects in Japan, Southeast Asia and Brazil. The company has diversified into energy technology solutions such as microgrids, virtual power plants and EV charging systems, supported by its proprietary energy management platform. As of 2024, Shizen’s global installed capacity exceeds 1GW.
Microsoft operates two data centres in Japan, in Saitama (Japan East) and Osaka (Japan West), both opened in 2014. In April 2025, Microsoft President Brad Smith announced a US$2.9 billion investment to expand the company’s Japanese data centre capacity, aligning with Japan’s national AI and digital infrastructure ambitions.
The agreement follows a broader trend among hyperscale operators pursuing renewable energy deals in Japan. Google recently signed a virtual PPA with JERA for its Inzai data centre in Chiba Prefecture, while Amazon concluded two similar agreements earlier this year with EDP Renewables APAC and X-Elio.
