Microsoft's latest sustainability report shows a 25 percent increase in greenhouse gas emissions, driven primarily by the expansion of data center infrastructure for AI. The company's Scope 2 emissions from purchased energy accounted for 13 percent of the total, and recent deals involving gas-powered data centers in Texas and West Virginia could push emissions even higher. Microsoft says it matched 100 percent of electricity use with carbon-free sources but has stopped buying unbundled renewable energy certificates, a move experts call commendable for prioritizing real clean power additions over paper offsets. The report follows similar disclosures from Google and Amazon, both of which also reported significant emissions increases tied to data center growth. Microsoft still aims to be carbon negative by 2030, but recent partnerships with Chevron and leases on gas-powered campuses in Texas raise questions about how that goal will be met. The company's shift away from unbundled RECs toward direct power purchase agreements is a positive step, but the scale of new gas infrastructure tied to AI data centers suggests emissions will keep climbing before they fall.
