Microsoft Emissions AI expansion drives Microsoft’s greenhouse gas emissions up 27%

Microsoft Emissions rose 27% during the company’s latest fiscal year. The increase highlights the environmental impact of the global race to expand artificial intelligence infrastructure.

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Microsoft said its total greenhouse gas emissions reached 21.1 million metric tons of carbon dioxide equivalent (mtCO2e) in the fiscal year ending June 30, 2025. That figure increased from 16.7 million mtCO2e a year earlier, according to the company’s 2026 Environmental Data Fact Sheet.

Meanwhile, Google and Amazon also reported higher emissions. Their latest reports showed increases of 18% and 16%, respectively. Together, the figures suggest that AI infrastructure is growing faster than climate initiatives can keep pace.

Microsoft’s emissions intensity also increased. The company generated 75.0 mtCO2e per million dollars of revenue, compared with 68.1 mtCO2e a year earlier. Although revenue climbed 15% to $281.7 billion, emissions rose at a faster rate. As a result, the company recorded its first increase in emissions intensity in at least six years.

Furthermore, Microsoft linked much of the rise to higher electricity use. Its Scope 2 market-based emissions, which measure emissions from purchased electricity, surged from 259,090 mtCO2e to 2.7 million mtCO2e during the year.

Overall, the latest figures show the growing environmental challenge facing major technology companies. They continue to invest heavily in AI data centers while working to meet long-term climate targets.