technology
Microsoft Reports 25 Percent Rise in Carbon Emissions for 2025
The increase stems mainly from AI data center expansion. The company matched 100 percent of its electricity use with renewables and replenished more water than it withdrew.
Jul 10, 6:44 AM·1m read1 source
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Microsoft's carbon emissions grew 25 percent year over year in 2025, Engadget reported. The company published its 2026 environmental sustainability report covering fiscal year 2025 and measures progress against its 2020 baseline. The growth resulted mostly from expansion of AI data center infrastructure investments.
Microsoft also stopped buying unbundled renewable energy certificates, which contributed to the reported increase. One certificate represents ownership of one megawatt-hour of zero-carbon electricity generated by a renewable source and delivered to the grid. Microsoft announced in 2020 that it plans to be carbon negative by 2030.
The report states that AI infrastructure is driving demand for energy, water, land, and materials while sustainability solutions are not scaling fast enough to meet demand. "We believe this change will create more long-term sustainability benefits," the report said of the shift away from certificates.
Microsoft matched 100 percent of its annual global electricity consumption with renewable energy in fiscal year 2025.
It also replenished more water than it withdrew globally. The company aims to become water positive by 2030. "We continue to really be focused around carbon negativity by 2030," Melanie Nakagawa said.
