Microsoft Reports 25% Rise in Emissions as AI Buildout Expands

According to Axios, Microsoft’s latest environmental report said the company’s total greenhouse gas emissions rose 25%, driven by growth in digital infrastructure—especially AI—and changes to its electricity procurement strategy. Microsoft said its data-center water-use efficiency improved 25% from a 2022 baseline, putting it on track toward a goal of improving that metric 40% by 2030, and reported that it returned more water to watersheds globally than it withdrew last year.

Microsoft also reported that emissions tied to purchased electricity jumped 945% between 2024 and 2025 while electricity consumption increased 24%, which it attributed largely to moving away from renewable energy certificates tied to existing projects and toward investments intended to finance new carbon-free electricity. Chief Sustainability Officer Melanie Nakagawa did not directly reaffirm whether Microsoft remains on track to become carbon negative by 2030, and the company said it is developing at least two data centers that will rely on natural gas for power, in Texas and West Virginia.