Microsoft's latest sustainability report shows a 25% increase in carbon emissions for fiscal 2025, driven by the rapid expansion of AI data centers. The company says the jump is mainly from Scope 2 emissions, which include purchased electricity, and that it has paused using unbundled renewable energy certificates to focus on adding new carbon-free power to grids. Microsoft still aims to be carbon negative by 2030. The report comes as Google and Amazon also report rising emissions linked to data center growth. State lawmakers are pushing back with moratoria and stricter regulations due to concerns over energy prices and land use. Microsoft's deal with Chevron for a gas-powered plant in Texas is not covered in this report but adds to the debate on how tech companies balance AI growth with climate commitments.
