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Microsoft Reviews 2030 Clean Energy Goal
The company’s carbon emissions have risen 23 percent since late 2022 while capital spending on data centers is projected to reach $190 billion this year, a 61 percent increase. Microsoft is adding 1 gigawatt of capacity every three months and has held talks to secure natural gas and nuclear power.
May 6, 9:20 PM·2m read2 sources
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Microsoft may delay or abandon its 2030 "100/100/0" clean-energy target as the costs of powering its expanding data center fleet mount. The 2030 target had aimed to match 100 percent of the company's electricity use, 100 percent of the time, with green energy purchases for its offices and data centers. Microsoft's carbon emissions have jumped 23 percent since late 2022.
The company is adding about 1 gigawatt of data center capacity every three months, enough to power 750,000 homes. Microsoft expects to spend about $190 billion on data center buildouts in its current fiscal year. Its CAPEX is projected to hit $190 billion this year, a 61 percent increase year-over-year.
Hyperscalers across the tech space are expected to spend nearly $700 billion in capex this year. The company recently held talks with Chevron to fund a major natural gas plant in the West Texas Permian Basin. It also partnered with Constellation Energy to revive Three Mile Island.
Meta, Google, and Amazon have seen similar emissions spikes as Microsoft. "The costly and energy-intensive buildout of data centers is affecting views on the feasibility of climate commitments made before the AI era," according to a person familiar with the matter.
"AI is an existential fight for survival for Big Tech, and so all and any funds at their disposal are being diverted to building as much AI as possible," Alexia Kelly of the High Tide Foundation said.
The scale of spending has forced some tech giants to slash headcount and trim operating costs to free up capital for data centers. Renewable energy has struggled to keep pace with the buildouts. The reality of power constraints in the AI era has collided with earlier climate pledges.
