Microsoft’s carbon emissions jump 25% amid AI buildout

Microsoft ↗ 0.95% disclosed on Thursday that its greenhouse gas emissions surged 25% in the past year, reaching 34 million metric tons of carbon dioxide equivalent in 2025, as the company's rapid buildout of AI-powering data centers continues to overwhelm its climate commitments.geekwire

The annual sustainability report, released July 9, puts the tech giant further from its pledge to become carbon negative by 2030. After accounting for carbon removal purchases, Microsoft's net emissions stood at roughly 20 million metric tons — on par with the total output of a country like Panama.geekwire

A Pattern Across Big Tech

Microsoft is not alone. Amazon Amazon.com, Inc. ↘ 0.30% reported a 16% jump in emissions last year to approximately 81 million metric tons, driven by data center construction and delivery fleet fuel use. Google Alphabet Inc. ↘ 1.23% saw its ambition-based emissions climb 18% overall in 2025, with Scope 3 supply-chain emissions rising 25% year over year, attributed largely to hardware manufacturing and facility construction.dw+2

"We continue to really be focused around carbon negativity by 2030," Microsoft Chief Sustainability Officer Melanie Nakagawa told GeekWire, even as the company's emissions from purchased electricity grew 25% in the latest reporting period.geekwire

Moratoria and Regulatory Pressure

The disclosures have intensified calls from climate groups for restrictions on data center development. Food and Water Watch published a report this week urging New Mexico lawmakers to adopt a data center moratorium, citing the facilities' enormous energy and water demands. According to a tracking effort by DataCenterBans.com, 19 of 50 U.S. states are now restricting or considering restrictions on data center construction.sourcenm+1

Meanwhile, a Reuters report found that planned gas plants dedicated to powering U.S. data centers could emit as much greenhouse gas annually as Australia or France. A Politico investigation published this week revealed that a 2023 Supreme Court ruling narrowing Clean Water Act protections has allowed dozens of data center projects to bypass federal permitting.reuters+1

Microsoft also acknowledged it has stopped purchasing unbundled, short-term renewable energy certificates — a mechanism that could quickly lower reported emissions — in favor of longer-term clean energy investments. The company said it has contracted 40 gigawatts of clean power purchase agreements across 26 countries, with 19 gigawatts currently operational.geekwire