Tech Giants’ Carbon Footprint Grows as Datacentres Expansion Spurs Emissions

Key Findings from Annual Sustainability Reports

The latest annual sustainability reports from Microsoft, Amazon and Google reveal a significant rise in their collective carbon emissions. In the financial year ending March 2026, these tech giants emitted approximately 119 million metric tonnes of CO₂ equivalent (mTCO₂e), marking an increase compared to previous years. This figure is roughly a third of France’s total emissions for that period.

Impact of AI and Cloud Services

The surge in emissions is primarily attributed to the rapid expansion of datacentre infrastructure as these companies meet growing demand for cloud services, including training and operating chatbots and other AI products. According to Microsoft’s report, their carbon footprint increased by 25%, while Google reported an 18% rise, and Amazon saw a 16% increase in supply chain emissions.

Despite these developments, the companies remain committed to achieving net zero emissions. By 2030, both Google and Microsoft have set this as their target date, with Amazon aiming for 2040. However, Cecilia Rikap, an economics professor at University College London, warns that expanding carbon footprints could undermine these climate ambitions.

Global Datacentre Construction Boom

The construction of datacentres is part of a larger trend driven by the tech sector's growing investment in AI. The global push to build this infrastructure, which includes projects from Norway to North Tyneside and beyond, is expected to cost $765 billion this year alone.

While these investments are substantial, they come at the expense of rising carbon emissions. Shaolei Ren, a professor of electrical engineering at the University of California, Riverside, notes that Microsoft’s report indicates fewer available carbon credits on global markets to offset their emissions. He suggests that this could indicate a potential shortage in the carbon credit supply required to meet these tech giants' needs.

Future Projections and Challenges

The expansion of datacentres is projected to significantly impact energy consumption globally. The Uptime Institute estimates that projects announced last year would consume 1.3% of the world's electricity usage, nearly doubling current demand for datacentre power. Most of this new power will come from US-based projects.

Source: The Guardian