Carbon dioxide (CO₂) emissions from the global tech sector continue to rise sharply, fueled by the rapid growth of artificial intelligence (AI) and expanding data infrastructure, according to the Greening Digital Companies 2025 report published by the International Telecommunication Union (ITU) and the World Benchmarking Alliance (WBA).
Tracking 200 leading digital firms, the report highlights a troubling surge in operational emissions — particularly Scope 1 and Scope 2 emissions — despite more companies setting climate targets and increasing their use of renewable energy.
The data shows that four AI-focused tech giants, including Amazon, Microsoft, Alphabet, and Meta, saw their CO₂ emissions rise by an average of 150 percent from 2020 to 2023, underscoring the environmental cost of scaling up AI.
indirect emissions from operations at Amazon, Microsoft, Alphabet, and Meta surged an average of 150 percent between 2020 and 2023, largely due to the energy-intensive requirements of AI-powered data centres.
Amazon recorded the highest rise, with operational CO₂ emissions jumping 182 percent during the period, followed by Microsoft (155 percent), Meta (145 percent), and Alphabet (138 percent). These emissions fall under Scope 2 emissions — stemming from the electricity, steam, heating, and cooling consumed to run massive digital infrastructures.
“Advances in digital innovation — especially AI — are driving up energy consumption and global emissions,” said Doreen Bogdan-Martin, Secretary-General of the ITU.
In 2023 alone, the 166 digital companies that disclosed emissions data were responsible for 0.8 percent of global energy-related CO₂ emissions. The 164 companies that reported electricity usage consumed 581 terawatt-hours (TWh) — 2.1 percent of global electricity demand, with just ten firms accounting for half of that figure.
The ITU, which tracked emissions from 200 leading digital companies, noted that the global boom in AI investment is now translating into a steep climb in energy demand, potentially adding up to 102.6 million tons of CO₂ equivalent annually from top AI systems alone. The report warned that electricity consumption by data centres is now growing four times faster than the global average for electricity use, creating mounting pressure on energy grids.
The report paints a mixed picture: while emissions are rising, corporate climate accountability is also improving. Notable progress includes:
23 companies ran entirely on renewable energy in 2023, up from 16 in 2022.
49 firms issued standalone climate reports, signaling greater transparency.
Scope 3 emissions — indirect emissions from supply chains and product use — are increasingly being addressed, with the number of companies setting such targets growing from 73 to 110.
The report marks the first time that company progress toward net-zero goals has been formally assessed. Nearly half of the companies have committed to reaching net-zero emissions, with 41 targeting 2050 and 51 aiming for earlier deadlines.
Still, the report emphasizes that current efforts have not yet led to an actual reduction in sector-wide CO₂ output. As AI drives greater electricity use — increasing at 12 percent annually from 2017 to 2023, four times faster than the global average — the tech industry faces an inflection point.
“More companies are stepping up, but emissions and electricity use continue to rise,” said Lourdes O. Montenegro, WBA’s Director of Research and Digitisation. “Leadership now demands real, measurable emission cuts — not just ambitious pledges.”
With AI set to become even more central to the digital economy, managing the carbon footprint of data centers and cloud infrastructure will be crucial if tech firms hope to meet their climate goals.
Despite corporate sustainability claims, the ITU found a disconnect between emissions targets and actual emissions reductions. While companies like Meta and Amazon pointed to initiatives involving renewable and nuclear energy investments, and Microsoft touted chip-level liquid cooling as an energy-saving measure, the overall trend shows emissions continuing to rise.
GreentechLead.com News Desk