Rising AI infrastructure demand is pushing up emissions across Microsoft, Google and Amazon, even as the companies pursue carbon credits, nuclear power deals and long-term climate targets.
Microsoft said its carbon emissions rose 25% in 2025 to about 20 million metric tons of carbon dioxide equivalent, as the company expanded AI data center infrastructure and paused some renewable energy credit purchases. The increase highlights how the rapid buildout of energy-intensive artificial intelligence facilities is complicating climate goals across Big Tech. Google reported an 18% increase in greenhouse gas emissions and Amazon posted a 16% rise to about 81 million metric tons, its largest annual increase since its 2019 net-zero pledge. Microsoft’s energy consumption has climbed 168% since 2020 during a period that coincides with its AI infrastructure push through OpenAI. The three companies have pointed to data center construction, surging electricity demand and broader AI buildouts as key drivers, while also increasing carbon credit purchases and pursuing carbon-free nuclear power agreements. The trend is also reshaping adjacent industries: IREN, formerly a Bitcoin mining operation, secured a $9.7 billion AI cloud contract with Microsoft to repurpose crypto mining sites for AI workloads.