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Microsoft has invested in low-carbon cement startup Fortera and also agreed to buy the company's cement from a future plant. 

Why it matters: The move is part of a larger trend of hyperscalers looking to reduce the carbon footprint of their data centers as emissions from AI rise.

Zoom in: Fortera and Microsoft didn't disclose the size of the deals. Microsoft made the equity investment through its Climate Innovation Fund.

Microsoft group manager of impact investments, Erik Urosa, joined Fortera's board of directors as an observer.

The funds are expected to help Fortera build a 400,000-ton-per-year commercial facility. 

Fortera CEO Ryan Gilliam says the company is currently out in the market raising a Series D round.

How it works: Fortera captures carbon dioxide from the flue of existing cement plants and uses it as a feedstock to produce cement that has a 70% lower carbon footprint.

Catch up quick: Fortera, founded in 2019, started operating its first plant in Redding, California, last year. It was built next to industrial giant CalPortland's cement plant.

Fortera closed an $85 million Series C round last year. Investors include Khosla Ventures, Singapore's Temasek, Wollemi Capital, Saint-Gobain's VC arm NOVA, and Japanese conglomerate Sumitomo's VC arm Presidio Ventures.

Fortera also has an agreement with Sumitomo Corporation to deploy Fortera's cement tech with Asian cement manufacturers.

Zoom out: Big tech firms are seeing their carbon emissions rise as they race to build data centers for the AI era.

Using low-carbon building materials is one way to lower data center footprints.

But low-carbon building materials are at an early phase of development. 

State of play: RMI recently launched the Sustainable Concrete Buyers Alliance, with companies including Amazon, Meta and Prologis, which helps buyers aggregate demand across companies to unlock investment. Similar groups have been developed for clean energy and carbon removal.

Amazon has committed to buying low-carbon cement from Brimstone, which has raised over $80 million from investors including Breakthrough Energy Ventures, DCVC, Collaborative Fund, Fifth Wall, and S2G Investments.

Low-carbon cement maker Terra CO2 recently closed a $124.5 million Series B from investors including Breakthrough Energy Ventures, Eagle Materials, Temasek-backed GenZero, Al Gore's Just Climate, Barclays Climate Ventures, Cemex, Prologis, and Siemens Financial Services.

Zoom out: Big tech is driving interest in low-carbon building materials as part of its attempt to manage its AI infrastructure footprint.

Microsoft backs Fortera and its low-carbon cement

Big Tech is looking to reduce the carbon footprints of data centers.

Construction workers in yellow safety vests pouring concrete on foundation slabs with rebar, trucks, and equipment around, with snow-capped mountains and trees in the background.

A project using Fortera low carbon poured at Simpson University. Photo: Courtesy of Fortera

Microsoft has invested in low-carbon cement startup Fortera and also agreed to buy the company&#x27;s cement from a future plant. Why it matters: The move is part of a larger trend of hyperscalers looking to reduce the carbon footprint of their data centers as emissions from AI rise.

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Microsoft backs Fortera and its low-carbon cement

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