Microsoft announced Thursday that it’s buying over 7 million tons of carbon credits from Chestnut Carbon.

The 25-year deal would enable Chestnut Carbon to reforest 60,000 acres of land across Arkansas, Louisiana, and Texas, Axios reported. Recently, the tech company has struggled to rein in its carbon emissions as AI has driven a surge in data center construction and use. 

Microsoft reported last year that its emissions rose 29% since 2020 as a result of the boom in AI and cloud computing, imperiling its 2030 goal to sequester more carbon than it produces. In 2023, the company reported generating 17.1 million tons of greenhouse gas emissions before offsets.

Carbon credits come in a range of flavors. Chestnut Carbon focuses on reforestation, in which the company facilitates tree planting and then monitors the new forests to ensure they grow as planned and aren’t cut down. The company currently has eight projects in the Southeast U.S., which were previously worked as farms or pastures. 

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