The "Energy IoT and Smart City Technology Alliance", also involving UK-based softare company Arm, will use the company's expertise and platforms to help integrate all areas of the electricity grid.
"The purpose of this alliance is to accelerate the digital transition and solve challenges through great teamwork," said Envision founder and CEO Lei Zhang.
Alain Crozier, vice president, chairman and CEO of Microsoft's greater China region office, said: "The powerful combination of Microsoft's cloud and Envision's IoT platform will help millions of enterprises and consumers in hundreds of cities across the world to embrace digital transformation, creating a new benchmark for the entire energy industry."
In September 2016, Envision unveiled its EnOS system and EnSight energy analytics platform for the wind industry.
It described EnOS as a "smart, scalable and open platform that is enabling the IoT for energy".
Envision said it "orchestrate(s) all types of energy infrastructure, connecting wind turbines, PV panels, energy storage, electric vehicles, smart grids, smart meters and home appliances, and other energy devices and machines".
EnOS will enable homes, neighbourhoods and cities to become self-sustained sustainable power plants, the company claimed.
It will be used alongside Microsoft's Azure cloud platform and Accenture's enterprise service to help seamless integration.
"The alliance's mission is to integrate and synergise the silos of different energy domains. Its work positions the members at the forefront of the energy transition by seeking more efficient networks that interconnect buildings, industry parks, vehicles, power generation plants, electric distribution, storages and end-user consumptions that help make cities 'smart'," Envision said.