AI giants see 150% rise in emissions amid data centre energy surge

Operational emissions from leading AI-focused tech companies have surged, according to a new report by the World Benchmarking Alliance (WBA) and the International Telecommunication Union (ITU). From 2020 to 2023, emissions rose by an average of 150%, driven by the high energy needs of data centres.

Amazon recorded the steepest rise, with operational emissions increasing by 182%. Microsoft followed with a 155% jump, while Meta and Alphabet saw emissions grow by 145% and 138% respectively. The findings come from the ‘Greening Digital Companies 2025’ report, which analysed the climate impact of 200 top digital firms over the three years.

Data centres, essential for AI functions, have seen electricity consumption rise by an average of 12% annually since 2017. This growth outpaces the global electricity demand increase by four times.

If left unchecked, AI systems with the highest emissions could contribute up to 102.6 million tonnes of CO₂ equivalent (tCO₂e) every year. The report calls for urgent measures to manage this impact as AI investments expand.

Despite the rise in emissions, the report notes progress in corporate sustainability. In 2023, 23 companies ran entirely on renewable energy, while 49 firms published standalone climate reports, reflecting improved transparency.

Awareness of indirect emissions is also growing. The number of companies with Scope 3 targets—covering supply chains and product use—rose from 73 to 110. Nearly half of the companies assessed have committed to net-zero emissions. Of these, 41 are targeting 2050, and 51 have set earlier deadlines.

The ITU-WBA report urges stronger data verification, clearer reporting, and more collaboration across sectors to ensure digital sustainability. Ahead of COP30, the ITU’s Green Digital Action aims to align digital climate pledges with their full environmental impact.