Microsoft reported a 25% increase in greenhouse gas emissions in 2025, reaching 20 million metric tons. The rise is tied to the construction of massive data centers for AI workloads and a temporary halt on purchasing certain renewable energy credits. The company still aims to be carbon negative by 2030 but is rethinking its strategy as sustainability solutions lag behind AI energy demand. Microsoft's president and chief sustainability officer acknowledged the tension between AI infrastructure growth and climate goals. The company has increased investments in carbon removal and renewable energy, but those efforts have not kept pace with the energy needs of new data centers. A deal with Chevron to supply natural gas for a Texas data center highlights the shift toward fossil fuels to meet demand. Microsoft may also drop its goal of matching data center electricity use with renewable energy every hour.
