Microsoft reports 25 percent rise in carbon emissions amid AI-driven datacenter growth

Microsoft’s 2026 sustainability report states that the company’s carbon emissions increased 25 percent in 2025, totaling 34 million metric tons “without select interventions.” The report attributes the rise primarily to the expansion of datacenter infrastructure and a decision made in February 2025 to stop purchasing “non-additional, unbundled renewable energy certificates.”

The company reiterated its goal to achieve carbon negativity by 2030, a target it has previously faced setbacks in meeting. The report explicitly notes that “sustainability solutions are not scaling fast enough to meet demand” driven by AI infrastructure, signaling a gap between environmental commitments and operational realities.

This marks the second consecutive year Microsoft has reported a significant rise in emissions, following a similar increase highlighted in its 2024 sustainability report.