Microsoft AI Expansion Drives 25% Emissions Increase in 2025
carbonherald.comMicrosoft's 2026 sustainability report shows a 25% rise in annual emissions to 20 million metric tons of CO2 equivalent, driven by data center construction for AI. The company paused renewable energy credit purchases, contributing to the increase, while remaining the largest buyer of carbon removal credits on the voluntary market. Microsoft still aims to be carbon negative by 2030, but the emissions jump highlights the tension between AI infrastructure growth and sustainability goals. The company has resumed buying carbon removal credits after a brief pause, signing deals with BioCirc and Alt Carbon. The CDR industry is watching closely for Microsoft's next moves.