Microsoft’s carbon emissions increased 25 percent in 2025, reaching 34 million metric tons “without select interventions,” according to the company’s 2026 sustainability report published in July 2026. The rise puts further pressure on Microsoft’s goal to become carbon negative by 2030.
Microsoft attributed the increase primarily to the expansion of its datacenter infrastructure, as well as its decision in February 2025 to stop purchasing “non-additional, unbundled renewable energy certificates.” The company’s own report acknowledges the challenge directly, stating: “While AI infrastructure is driving demand for energy, water, land, and materials, sustainability solutions are not scaling fast enough to meet demand.”
This is not the first time Microsoft has reported a setback on its climate commitments. Its 2024 sustainability report documented a similar rise in carbon emissions, suggesting the trend may reflect a structural gap between the company’s infrastructure growth and its environmental targets.
Microsoft is not alone among major tech companies facing this issue. Google also reported a 25 percent spike in its supply chain emissions in its own 2026 sustainability report. Amazon reported a slightly lower increase of 16 percent, and separately disclosed in June 2026 that its data centers consumed 2.5 billion gallons of water in 2025 — a figure Amazon claims is less than Microsoft used.
The pattern across all three companies suggests that rapid AI-driven datacenter expansion may be making it harder for large tech firms to meet previously stated climate goals, though the pace and scale of any course correction remains unclear.
Source: The Verge