WEDNESDAY, JULY 15, 2026|No. 7271
Business · Environment · Tech

Microsoft Carbon Emissions Rise 25% as AI Drives Energy Demand

Microsoft's carbon emissions increased by 25% in 2025, reaching 34 million metric tons, driven by data center expansion and AI infrastructure.

Microsoft's data centers are expanding rapidly to meet AI demand, contributing to a 25% rise in carbon emissions.
Microsoft's data centers are expanding rapidly to meet AI demand, contributing to a 25% rise in carbon emissions.
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Microsoft may once again be struggling to keep up with its own climate goals, according to its 2026 sustainability report. As reported by GeekWire, the report states that Microsoft’s carbon emissions increased 25 percent in 2025, totalling 34 million metric tons “without select interventions.” Microsoft says this was “driven primarily by the expansion of our datacenter infrastructure,” as well as the company’s decision last February to stop purchasing “non-additional, unbundled renewable energy certificates.”

Several years ago, Microsoft set itself a goal to be carbon negative by 2030, meaning it will need to remove more carbon emissions than it produces. This isn’t the first time Microsoft has faced setbacks toward accomplishing that goal, as its 2024 sustainability report showed a similar rise in climate pollution. This year’s report admits that, “While AI infrastructure is driving demand for energy, water, land, and materials, sustainability solutions are not scaling fast enough to meet demand.”

Google similarly reported a 25 percent spike in its supply chain emissions in its 2026 sustainability report, with Amazon reporting a slightly lower 16 percent increase. In June, Amazon also reported that its data centers used 2.5 billion gallons of water in 2025, which it claims is less than Microsoft used.

PAN's pipeline reviewed approximately 1 open sources for this article. No human editor reviewed this article before publication.

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