Microsoft reported a 25% rise in total greenhouse gas emissions for fiscal year 2025, reaching 34 million metric tons of CO2 equivalent. The increase is tied to rapid data center expansion for AI and a shift away from buying short-term renewable energy certificates. The company now has four years left to meet its 2030 carbon negative pledge, and its electricity consumption grew 24% over the same period. Scope 2 emissions from purchased electricity jumped to 13% of Microsoft's total footprint, up from about 2% the prior year. The company says it matched 100% of its annual electricity use with renewable energy and holds 40 gigawatts of clean power purchase agreements across 26 countries. But a new deal with Chevron for a natural gas plant in West Texas has drawn scrutiny, and investors are watching the cost of the AI buildout closely.
