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Microsoft’s carbon emissions went up 25 percent last year
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- DeepHorus
Microsoft’s carbon emissions surged 25 percent in 2025, reaching 34 million metric tons, according to the company’s 2026 sustainability report released this week. The increase was driven primarily by the expansion of its datacenter infrastructure to support growing AI workloads, as well as a decision to stop purchasing certain renewable energy certificates. This marks a significant setback for Microsoft’s goal to become carbon negative by 2030, as emissions continue to climb rather than decline.
The report highlights that sustainability solutions are not scaling fast enough to meet the demands of AI infrastructure, which requires vast amounts of energy, water, land, and materials. Microsoft had previously set a target to be carbon negative by 2030, meaning it would remove more carbon than it emits. However, this is not the first time the company has struggled to meet its climate goals; a similar rise was reported in its 2024 sustainability report.
Key figures from the report show that emissions totaled 34 million metric tons, a 25% increase from the previous year. This spike is attributed to the rapid expansion of datacenters, which are critical for Microsoft’s AI and cloud computing services. Additionally, the company’s decision in February 2025 to stop purchasing “non-additional, unbundled renewable energy certificates” further contributed to the rise, as these certificates had previously offset some emissions.
The implications of this increase are significant for Microsoft’s climate commitments. The company now faces an even greater challenge to achieve carbon negativity in just four years. The report acknowledges that “sustainability solutions are not scaling fast enough to meet demand,” suggesting that current technologies and practices are insufficient to keep pace with AI-driven growth.
Microsoft is not alone in this struggle. Google also reported a 25% spike in its supply chain emissions in its 2026 sustainability report, while Amazon reported a 16% increase. Amazon’s report further revealed that its data centers used 2.5 billion gallons of water in 2025, which it claims is less than Microsoft’s consumption. These figures underscore a broader industry challenge as tech giants expand AI infrastructure.
Reactions from environmental groups and analysts have been muted, but the trend raises concerns about the environmental cost of AI. Microsoft’s report serves as a reminder that even well-intentioned climate pledges can be derailed by rapid technological expansion. The company has not announced new measures to reverse the trend but continues to invest in carbon removal technologies and renewable energy.
Looking ahead, Microsoft faces a steep path to its 2030 goal. The company must either accelerate carbon removal efforts or slow the growth of its datacenter footprint, which is unlikely given the AI boom. The report’s admission that sustainability solutions are lagging indicates that without breakthrough innovations, meeting the target will be extremely difficult. Investors and stakeholders will be watching closely to see if Microsoft can reconcile its AI ambitions with its climate promises.
