Microsoft has disclosed in its latest environmental sustainability report that total greenhouse gas emissions for fiscal 2025 rose about 25% year over year, driven primarily by growing electricity demand from AI data center expansion.
Fiscal 2025 · Environmental Report
AI's Energy Toll Pushes Microsoft's Emissions Up 25%
Total greenhouse gas emissions reached roughly 34 million tonnes CO2 e — up about 25% year over year — driven primarily by electricity demand from a wave of new AI data centers, complicating the pledge to go carbon negative by 2030.
+25%
Emissions rise year over year
34Mt
Total CO2 e across Scope 1, 2 & 3
18×
Carbon-free power contracts vs 2020 (34 GW)
Not Just Microsoft — The Industry Is Climbing
Emissions increases at major hyperscalers, all citing data center expansion.
Since 2020: Growth Outpaces Emissions
Microsoft's argument: total emissions rose modestly relative to soaring energy use and revenue.
Energy use
Revenue
Total emissions
The Fossil-Fuel Pull
Major new data center projects leaning on gas power, in annual CO2 e.
West Texas gas plant (Chevron)
>11.5 Mt
West Virginia off-grid gas facility
>11 Mt
Stargate campus, Abilene
>7.8 Mt
The West Texas plant alone would exceed the emissions of the entire state of Rhode Island. U.S. data centers used over 4% of national electricity in 2023 — 56% from fossil fuels — with forecasts of 8–12% by 2030.
Microsoft's case
Scope 1 & 2 are down 30% since 2020. It has secured 34 GW of carbon-free power (18× the 2020 level) and is shifting toward PPAs with physical additionality and direct investment.
The tension
Total emissions have turned upward, deepening reliance on gas power. Dropping unbundled RECs lifted Scope 2, and doubts persist over reaching carbon-negative by 2030.
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