Microsoft sees its carbon emissions soar on an 168% glut in AI energy demand, “we recognize that we must also bring more carbon-free electricity onto the grids.”

by

One thing I’ve consistently appreciated about Microsoft is its openness regarding its environmental impact. Compared to many other large corporations, Microsoft stands out for its commitment to achieving full carbon negativity, a goal they have set with a clear timeline in place.

By 2030, Microsoft aims to remove more carbon dioxide from the atmosphere than they emit, thereby not just reducing current emissions, but also offsetting past emissions entirely.

Here’s one way I might rephrase it:

“I’ve been learning about this, and let me tell you, AI can be quite the power consumer! Not only does it require a lot of water for cooling, but its energy demands have been on a steady climb. In fact, Microsoft has reported a 23.4% increase in carbon emissions and a staggering 168% rise in energy consumption due to AI alone!

The bad news

Brad Smith, Microsoft’s president, acknowledged that their commitments made for 2030 are more of a long-term race (a marathon) rather than a quick dash (a sprint).

I’ve been observing our relentless pursuit of our 2030 objectives, and it seems our carbon-negative ambition is more like a long-distance run than a swift dash. Despite a 23.4% rise in our overall emissions (Scope 1, 2, and 3), which can be attributed to factors such as AI and cloud expansion, I find comfort in the fact that this growth has been restrained compared to the 168% surge in energy consumption and 71% revenue growth experienced over the same timeframe.

It’s not particularly flattering for Microsoft when they acknowledge that their total emissions have increased instead of decreased halfway through their pledged timeframe, suggesting their eco-friendly reputation may not be as robust as it seems. In an attempt to meet their energy needs, Microsoft and similar tech giants are investigating options such as nuclear power, which has minimal carbon emission directly. However, the handling of nuclear waste is a significant environmental concern that deserves attention. Let’s move on…

Microsoft follows the Greenhouse Gas Protocol to classify its emissions, dividing them into three main categories: Scope 1, 2, and 3. These scopes encompass a wide range of emissions, from straightforward items like operational energy use at their own facilities (Scope 1), to more indirect ones such as energy consumption in the supply chain or emissions produced by third parties or customers (Scopes 2 and 3). The accuracy of these “scopes” has been debated, with critics arguing they are overly complex and can potentially be used to hide a company’s complete carbon footprint – a practice sometimes referred to as “greenwashing.

A significant aspect of Microsoft’s strive towards being “carbon negative” involves activities such as buying carbon offsets from firms like Climeworks, who construct massive facilities to physically capture carbon dioxide directly from the atmosphere. Additionally, they have significantly boosted their investments in tree planting projects.

While these “offsets” are frequently at the center of debates, it’s important to note that trees take years before they significantly store carbon and many of these projects may even decrease biodiversity due to monoculture practices. These green initiatives, if not properly maintained, can potentially harm rather than help the environment. However, many businesses still include these “offsets” in their calculations without verifying if they’ve actually produced results, which is similar to borrowing from the future, using time that humanity might not be able to afford.

Microsoft is focusing more on reducing its indirect emissions (Scope 3), which are emissions not directly under their control, such as those produced through economic activities. These emissions have risen by 26% since their 2020 benchmark in the fiscal year 2024, mainly due to an expansion in its supply chain’s emissions and other related factors.

One piece of troubling information is that the Trump administration’s latest U.S. law, referred to as the Big Beautiful Bill, eliminates tax incentives for solar, wind, and battery storage in renewable energy. Consequently, securing significant funding for new renewable energy projects could become extremely challenging at a time when we urgently need it.

The good(ish) news?

Although energy demand rose by 168%, it’s positive to note that Microsoft’s total carbon emissions increased by just 23.4%. Assuming the data is correct, this suggests Microsoft is making strides in reducing its carbon footprint. In an effort to meet its growing energy needs, Microsoft is investing more in renewable energy sources.

Microsoft has agreed to harness 19 gigawatts of fresh renewable energy resources across sixteen different nations to fuel its data centers. Moreover, instead of using concrete for construction, Microsoft is now building its data centers from wood, a material that significantly reduces carbon emissions during production. Additionally, Microsoft is innovating new cooling technologies as part of an effort to transition from traditional air-cooling systems towards more efficient direct-to-chip liquid cooling designs.

In fiscal year 2024, Microsoft bought carbon removal contracts valued at approximately 22 million metric tons. Additionally, they invested in renewable diesel for their transportation needs, reducing emissions by half. Furthermore, Microsoft collaborated with airlines and shipping companies to increase the use of sustainable fuel. According to Microsoft, this collaboration has already resulted in a reduction of over 17,000 metric tons in emissions.

Microsoft additionally reports that it has granted over 1.5 million individuals enhanced access to clean water and sanitation in regions where it conducts business, while simultaneously increasing water efficiency within its own facilities. Moreover, Microsoft claims that its zero-water cooling solutions will diminish water consumption by approximately 125,000 cubic meters each year, per facility.

“A marathon, not a sprint,” says Microsoft

Certainly, Microsoft is just one business entity, yet humanity has so far neglected to address greenhouse gas emissions adequately. Regrettably, the year 2025 continues to set new records for extreme temperature increases and abnormal ocean heat levels.

Regardless of large-scale renewable energy initiatives in major polluters like the U.S., Europe, China, and India, the desire for expansion and ease has surpassed the rate at which renewable energy is growing. In 2024, global carbon emissions reached a staggering 40.8 billion metric tons—an all-time high. Remarkably, 2024 was the warmest year ever recorded, with 2025 projected to surpass that record as well.

Big tech companies like Microsoft, in the past, have been at the forefront of environmental responsibility. However, as is often the case, the quarterly demands of shareholders tend to overshadow social issues. The competition to establish dominance in AI has led Microsoft and other corporations to prioritize shareholder profits over their climate commitments.

It’s pleasant to observe Microsoft attempting some effort, yet it’s quite evident where Microsoft focuses its resources.

Read More

2025-07-09 10:10