Microsoft’s total carbon emissions surged by 25% in 2025, as revealed in its latest sustainability report, driven largely by expanding AI data centers. Experts warn emissions will continue rising because Microsoft still relies heavily on fossil fuels to power these centers. The increase was mainly attributed to both the growth of AI infrastructure and a temporary pause in using certain renewable energy certificates. Although Microsoft aims to be carbon negative by 2030, its upcoming gas power plant projects—totaling 4.75 gigawatts—are expected to more than double emissions, releasing over 15 million metric tons of CO2 annually. Critics argue the current sustainability report downplays these projected emissions and highlight Microsoft’s new fossil fuel deal with Chevron, which undermines its green goals. Despite acknowledging the challenge that AI infrastructure poses to its climate commitments, Microsoft maintains that AI can aid sustainability efforts and continues to seek ways to increase carbon-free electricity and support clean energy expansion. Other tech giants like Google and Amazon are also facing rising emissions linked to AI infrastructure growth, indicating a broader industry trend.
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