Microsoft has signed a carbon removal credit purchase agreement with BioCirc for 650,000 metric tons, signaling ongoing commitment to emissions reduction despite challenges from AI data center expansion. The agreement, finalized in May 2026, follows rumors that Microsoft had paused such transactions. Melanie Nakagawa, Microsoft's Chief Sustainability Officer, clarified that the company is adjusting its procurement pace and scale, not discontinuing efforts. The credits originate from BioCirc's five biogas projects, which convert biomass waste into methane and carbon dioxide, with the latter being captured and stored. As Microsoft accelerates its AI infrastructure, it is also exploring reliable power sources, including a natural gas project with Chevron and Engine No. 1. This dual approach highlights the company's need to balance increased energy demands with its 2030 carbon-negative goal.