Microsoft wants to save the planet and also cover it in data centers. Those two goals are not getting along.
The company’s 2025 Environmental Sustainability Report reveals that total greenhouse gas emissions climbed 23.4% from its 2020 baseline during fiscal year 2024, driven almost entirely by the insatiable energy appetite of AI and cloud computing infrastructure. Scope 2 emissions, the ones tied to purchased electricity, more than doubled over four years.
The AI energy paradox hitting Big Tech
Microsoft isn’t alone in this awkward position. Google’s latest disclosures show emissions rising approximately 18-25%, while Amazon reported a 16% year-over-year increase. All three companies point to the same culprit: data center expansions built to handle AI workloads.
Microsoft did manage to cut its Scope 1 and Scope 2 emissions by nearly 30% through efficiency gains and renewable energy purchases. But Scope 3 emissions, the ones generated across the supply chain including all that concrete, steel, and semiconductor manufacturing needed for new data centers, are swamping those improvements.
