Microsoft's emissions rose 25%, analysts predict further increases
Microsoft reported a 25% increase in total emissions for 2025, primarily due to expansion of AI data centers and a pause in renewable energy certificate use. Analysts expect emissions to continue rising.
Microsoft's total emissions saw a 25% increase in 2025, according to its most recent sustainability report, adding to a trend of rising emissions in the tech sector as companies expand AI data centers.
The company attributed the rise primarily to the growth of its AI data center infrastructure and a decision to pause its use of certain renewable energy certificates. However, outside analysts predict that Microsoft's emissions are set to continue their significant surge, citing the company's reliance on fossil fuels to power this infrastructure.
While Microsoft reiterated its commitment to be carbon negative by 2030, its sustainability report did not mention three forthcoming natural gas power plant projects. These projects, analyzed by Stand.earth, are expected to more than double Microsoft's emissions, releasing over 15 million metric tons of carbon dioxide annually.
Critics argue that Microsoft's strategy is contradictory, pointing to a 20-year deal for fossil fuels with Chevron that undermines its stated goals. The company's electricity consumption has surged nearly 250% since 2020, reaching levels comparable to Denmark's total power usage. Microsoft acknowledges that the energy demands of AI infrastructure are challenging its climate commitments, while also suggesting AI can aid sustainability efforts.