Microsoft's carbon emissions jump 25% amid AI boom
What's the story
Microsoft's carbon emissions have risen by 25% in 2025, according to its latest sustainability report. The company's total carbon emissions hit 34 million metric tons "without select interventions," as reported by GeekWire. The increase was mainly due to the expansion of Microsoft's data center infrastructure and its decision to stop purchasing "non-additional, unbundled renewable energy certificates" last February.
Goal setback
Microsoft struggles to meet carbon negative target
Microsoft had previously set a target to be carbon negative by 2030, meaning it would have to remove more carbon emissions than it produces. However, the company has faced challenges in achieving this goal. Its 2024 sustainability report also showed a similar increase in climate pollution. This year's report acknowledged that "while AI infrastructure is driving demand for energy, water, land and materials," sustainability solutions are not scaling fast enough to meet demand.
Industry trend
Other tech giants facing similar challenges
Microsoft isn't the only tech giant facing this issue. Google reported a 25% increase in its supply chain emissions in its 2026 sustainability report, while Amazon's emissions rose by a slightly lower at 16%. The companies have all admitted that the expansion of AI infrastructure is outpacing their decarbonization efforts.
Resource impact
Microsoft's emissions intensity also increased
Along with the spike in carbon emissions, Microsoft's emissions intensity has also increased. It now pollutes more for every dollar it generates in revenue. The company's emissions intensity rose to 75 metric tons of CO2 equivalent per million dollars of revenue from 68.1 the previous year. This is the first increase in at least six years despite a 15% growth in revenue to $281.7 billion during this period. Microsoft's water consumption also increased by 22% to 8,170 megaliters.