Microsoft's latest sustainability report shows a 25% year-over-year increase in carbon emissions, largely due to AI data center growth. The company clarified that a viral figure of 37.5 million tons was not its actual annual total, which stands at about 22 million tons. The larger number came from an illustrative scenario estimating emissions without certain carbon-cutting measures. Microsoft has stopped buying unbundled renewable energy certificates, which critics see as greenwashing, and is instead investing in long-term carbon reduction, removal, and clean electricity procurement. The report also highlights water stewardship efforts, with Microsoft claiming it returned more water than it used. The AI boom is straining climate goals as energy-intensive data centers expand.
